We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

De Beers and US Anti Trust Law - Case Study Example

Comments (0) Cite this document
Summary to case study on topic "De Beers and US Anti Trust Law"
Diamond market is dominated by De Beers world over for more than one hundred years since its inception in 1880. The diamond trade has been managed by a 'cartel' since these days headed by De Beers mining company. Once the availability of diamond mines shrunk to Africa and a few in Brazil, the diamond mines in Africa controlled the availability of the diamonds in the market and their price…
Download full paper
Polish This Essay
De Beers and US Anti Trust Law
Read TextPreview

Extract of case study "De Beers and US Anti Trust Law"

Download file "De Beers and US Anti Trust Law" to see previous pages... With the discovery of large mines in South Africa, the diamond availability in the world market suddenly reached a high. In order to ensure that the prices of the diamond in the market are maintained, the supplies had to be limited. The miners in South Africa which was the lead producer of diamonds, started working together and created a 'cartel' that would discuss and decide the price of diamonds in the world market.
Let us write or edit the essay on your topic "De Beers and US Anti Trust Law" with a personal 20% discount.. Try it now
This cartel was formed with De Beers in the lead and they coordinated the entire operation of forming this initial syndicate that would canalize and fix the supplies of diamonds in the world market. This also ensured that every body in the trade benefited because it maintained the price of the diamond in the world market without allowing it to fall or rise phenomenally.
Once the diamond mines in other locations of the world were discovered, the South African control over the world market with respect to the supplies of the diamond mines came down. More mines in Angola, Russia, Congo and Zaire started to dominate the world market and the South African share in the market came down to 17%. However, De Beers by enforcing clear commercial and economic control on the market could bring these people also under control and ensured that the price of diamonds does not fall and continued to rise or stabilise even when the supplies of diamonds kept rising. This meant that De Beers had to buy out from the market some of the diamonds that was available to bring stability to the pricing. This resulted in a large stock pile for De Beers. The company resorted to both buying as well as selling of diamonds in order to bring down the prices or raise the prices as the need may be. This ensured diamond price was under control and the miners did not suffer.

De Beers and the US Government
De Beers has been a practising monopoly. They tended to control the price of the diamond market and this meant that they violate the US Antitrust law and its governing principles. De Beers was violating every one of the Anti-trust law principle except for the consumer protection which De Beers says it covers. But then, even that would be under question on analysis. US Diamond Dealers mostly dealt with the buyers of De Beers diamonds. The identity of the diamonds is lost once they reach the coast of US. Though the diamonds are not known to have originated from De Beers, the company as a brand was very well known. The US government and its Department of Justice were also aware of the violations of De Beers and they have taken multitude of steps to bring them under the book but these are yet to materialise. The relationship with the diamond traders in US and that of the government is certainly not one for long and sustained relationship. It has to be direct and legal to be sustainable. In order to do this, either the company should change its method of operation or change the law to accommodate such a change.

De Beers, the Illegal trade and the US Market
The structure created by the anti-trust law is in line with the thinking of the greatest minds on economics. In addition to that, any violation of the basic principle of capitalist and free economics would only lead to the decay of the structure so carefully erected. De Beers is a violator ...Download file "De Beers and US Anti Trust Law" to see next pagesRead More
Cite this document "De Beers and US Anti Trust Law"
  • APA
  • MLA
(“De Beers and US Anti Trust Law Case Study Example | Topics and Well Written Essays - 750 words”, n.d.)
De Beers and US Anti Trust Law Case Study Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/miscellaneous/1505190-de-beers-and-us-anti-trust-law
(De Beers and US Anti Trust Law Case Study Example | Topics and Well Written Essays - 750 Words)
De Beers and US Anti Trust Law Case Study Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/miscellaneous/1505190-de-beers-and-us-anti-trust-law.
“De Beers and US Anti Trust Law Case Study Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/miscellaneous/1505190-de-beers-and-us-anti-trust-law.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Demand And Supply
A Monopoly or Monopolies have been determined as one of the main types or causes of market failure, the term not suggesting death or cessation of the market but rather aligned with the definition of a monopoly. A monopoly is defined as: “exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices.” (Dictionary.com Unabrdiged v 1.1) In dealing with microeconomics, we must be cognizant of the real world nature of this subject area as well as the simplicity of its underlying structure, whilst the monopoly, and different types of competitive behaviors, form part of the industrial organization of the broader microeconomic fie
7 Pages(1750 words)Case Study
DE Beers Diamond Dilemma
DE Beer’s Diamond Dilemma Pestle analysis of De Beer’s Diamond Dilemma Some of the factors in the macro-environment that affects the various decisions within an organization are political, economic, social, technological and environmental factors. All these factors are can be analyzed using Pestle framework (Gillespie, 2009).
9 Pages(2250 words)Case Study
Property and Trust
If the property has to be sold then all the legal owners have to accord their permission. In case of dispute a single owner can sue in the court regarding the sale proceedings. Another aspect to be considered is whether there is any beneficial ownership to be taken into consideration apart from the legal ownership.
11 Pages(2750 words)Case Study
Resulting and Constructive Trust in Equity & Trust
In 1991, Lynn gave birth to their first child, changed her surname to Mike's and held herself out to their friends and family as his wife. A second child was born in1995. Over the years, the mortgage payments were always paid out of Mike's salary, whilst Lynn paid all the food bills and out goings on the house (I.e., council tax, water rates, gas, electricity and telephone charges) out if her own income as part-time secretary.
7 Pages(1750 words)Case Study
Law of express trust
The trustee has to administer the property and is obliged to distribute it to the beneficiary in terms of the trust. Therefore, the necessary ingredients for an express trust are i) The creator, the person who transfer the trust, i.e. Settlor, also called as the grantor or trustor; ii) Trust Property, it may be any thing, either tangible or intangible, iii)The Trustee, who is in a fiduciary relation with the rust and is obliged to manage and distributes the property as per the wishes of the settlor.
4 Pages(1000 words)Case Study
De Beers
The De Beers Cartel is a organization that mines diamonds , which was set up by the South African mining magnate, Sir Ernest Oppenheimer, in 1934 ( Stefan 1993 p 5) . Over eighty percent of world sales of rough diamonds are on account of this marketer. One mine in this cartel is the Venetia Diamond Mine, South Africa's largest diamond producer, and the centre of De Beers' investments.
9 Pages(2250 words)Case Study
Trust in a law
Without any monetary consideration from Bill. This was done without the intention of any beneficial ownership to Bill. 1 ch. 269 it suggests that it is not correct to talk in terms of equitable title remaining with the settlor.3 However quoting Mergarry J, he distinguished that there are two major categories of resulting trust which can be distinguished between automatic and presumed resulting trust , as follows to wit:
8 Pages(2000 words)Case Study
Regardless of his own personal interests and preferences the trustee has a fiduciary duty to act always in the best interest of the trust. A trustee is normally expected to hold and administer the trust property for the benefit of the trust beneficiaries in accordance with the purposes set down in the trust deed and according to general trust law.
6 Pages(1500 words)Case Study
De Beers' recommended strategy
ould undertake first is strategy # 3 as the company’s business model to control and manage the amount of inventory to be sent in the market is no longer effective and the company needs to adopt new ways to regain its hold on the described business model and to stay
1 Pages(250 words)Case Study
Satelite Distribuidora de Petroleo
From the presented case, however, SAT is highly leveraged with financial debt being more than 60% of its total liabilities (Applegate and Minardi). In addition, for every $1 fund used to fin ace its operations, $0.55 is from the debt capital and
4 Pages(1000 words)Case Study
Let us find you another Case Study on topic De Beers and US Anti Trust Law for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us