Paper 1 real world example: The role of the price mechanism in the diamond market
The diamond market is undergoing a huge structural shift. The world’s leading diamond business, De Beer’s major shareholder Anglo American has put its 85% stake in the company up for sale as its revenues and profits fall. De Beer’s diamond revenues have fallen 18% this year. De Beers sees falling demand in the US and China as reasons for its difficulties, but there may be a more existential threat to DE Beer’s in the...