The Modern Diamond Market (Chapter 3, Key Terms & Key Concepts)

Question 1

A commitment to reserve a portion of
the resources derived from any country for the economic development of that country

Answer 1

Beneficiation

Question 2

De Beers’ formalized commitment of itself and its sightholders to the
highest ethical standards.

Answer 2

Best Practices Principles (BPP)

Question 3

A traditional store consisting of walls and a fixed location.

Answer 3

Brick-and-mortar retailer

Question 4

Rough diamonds used by rebel
movements or their allies to finance conflict aimed at
undermining legitimate government

Answer 4

Conflict diamonds

Question 5

A city, region, or country with a large
number of gemstone manufacturer

Answer 5

Cutting center

Question 6

Business that sells to consumers
via television or computer.

Answer 6

Electronic retailer

Question 7

Diamond industry program
designed to ensure that diamonds crossing international borders are legitimate and do not fund civil
conflict or terrorism

Answer 7

Kimberley Process (KP)

Question 8

Program adopted by De Beers
in 2001, in which it required its sightholders to help
increase market demand for diamonds.

Answer 8

Supplier of Choice

Question 9

Program adopted by De
Beers in 2007 to answer critics and resolve shortcomings of its original SOC program.

Answer 9

Supplier of Choice 2

Question 10

Involvement of a business or
industry in all aspects of its product’s market.

Answer 10

Vertical integration

Question 11

The Central Selling Organization (CSO) controlled diamond prices by buying and holding
supplies until demand increased.

Answer 11

Key Concept

Question 12

A finished piece of diamond jewelry has much greater value
than a rough diamond crystal.

Answer 12

Key Concept

Question 13

The low-wage Indian cutting industry allowed Argyle’s small,
lower-quality stones to be processed for the jewelry market.

Answer 13

Key Concept

Question 14

Beneficiation helps countries exercise greater control over
their natural mineral resources.

Answer 14

Key Concept

Question 15

New diamond supplies combined with major political and
economic events led De Beers to institute dramatic changes.

Answer 15

Key Concept

Question 16

Supplier of Choice (SOC) sightholders had to demonstrate the ability to sell
diamonds and to add value to those diamonds in some way.

Answer 16

Key Concept

Question 17

De Beers’ efforts at reinvention proved to be an evolving
process

Answer 17

Key Concept

Question 18

De Beers’ advocacy of corporate responsibility had a more
profound impact on the diamond market than its advocacy of
branding.

Answer 18

Key Concept

Question 19

India’s diamond manufacturing industry makes it a major
force in the new multi-channel market.

Answer 19

Key Concept

Question 20

Electronic retailing showed an ability to sell a huge volume of
diamonds without relying on the “personal touch.”

Answer 20

Key Concept

Question 21

The future of the diamond market in manufacturing and
consumption may be in Asia, especially China and India.

Answer 21

Key Concept

Question 22

A bourse is a(n)

Answer 22

club where diamond dealers meet to sell, trade, and share industry news.

Question 23

Which diamond mine’s huge production influenced the world market in the late 1980s?

Answer 23

Argyle

Question 24

By 2004, more than 90 percent of manufacturing for the diamond market was done in

Answer 24

India.

Question 25

Vast quantities of small, inexpensive diamonds suitable for low-cost, mass-market jewelry are mined in

Answer 25

Australia.

Question 26

The diamond industry program designed to ensure that diamonds do not fund civil conflict or terrorism is called

Answer 26

the Kimberley Process.

Question 27

In 2000, De Beers altered its consumer advertising by

Answer 27

introducing the “Forevermark” logo.

Question 28

Because the Australians believed the CSO’s marketing favored large stones over smaller ones, they

Answer 28

aggressively promoted jewelry set with their own tiny gems.

Question 29

The involvement of a business or industry in all aspects of its product’s market is called

Answer 29

vertical integration.

Question 30

In South Africa, a new mining charter that designates the people of the country as the owners of its mineral resources is a result of

Answer 30

Black Economic Empowerment (BEE)-Mining Charter

Question 31

A city, region, or country with a large number of gemstone manufacturers is called a

Answer 31

cutting center.

Question 32

Businesses that sell to consumers via television cable, phone line, or satellite are called

Answer 32

electronic retailers.

Question 33

A commitment to reserve a portion of the resources derived from any country for the economic development of that country is called

Answer 33

beneficiation.

Question 34

The program adopted by De Beers in 2007 to answer critics and resolve shortcomings of its Supplier of Choice (SOC) program is called

Answer 34

Supplier of Choice 2.

Question 35

One of the changes that resulted from De Beers’ strategic review in 1999 was that De Beers

Answer 35

That the Central Selling Organisation (CSO) would be renamed the Diamond Trading Company (DTC)

Question 36

De Beers became a privately owned company in

Answer 36

May 2001