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Auriument aims and skille \( 1,2,4,7 \), , 1. Why doyou think the competition between Rhodes and Barnatos' companles Increased the level of production of dlamonds? 2. If thls competition continued, what do you think might have happened to the price of diamonds on the market? Explain your answer. 3. Read Source E and the text on these two pages. Explain in a one page essay how the procers of amalgamation (Jolning up) Into one company happened on the diamond fields. Your answer will be marked with the rubric on page 244. 4. Read Source F and explaln how Kimberley changed.

Ask by Gross Bright. in South Africa
Mar 13,2025

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1. **Increased Production:** Competition between Rhodes and Barnato's companies pushed both to boost diamond mining operations, leading to higher production levels. 2. **Price Decrease:** With increased supply and potential price wars, the price of diamonds would likely drop as the market became more saturated. 3. **Amalgamation Process:** To enhance efficiency and profitability, companies merged their operations, forming a dominant entity like De Beers, which controlled most diamond production. 4. **Kimberley's Transformation:** Kimberley grew rapidly due to the diamond rush, becoming a bustling urban center with improved infrastructure but also facing challenges from corporate consolidation and displacement of small miners.

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The fierce rivalry between Cecil Rhodes and the Barnato brothers was fueled by their ambitions to dominate the diamond industry in South Africa, which led to intensified production as each sought to outdo the other. This competition drove innovation and efficiency, pushing both groups to invest heavily in mining technologies and practices. As they raced to claim more land and extract as many diamonds as possible, the overall output of diamonds increased significantly, changing the landscape of the global diamond market. If the competition had persisted, the price of diamonds might have faced downward pressure due to the oversupply created by the increased production. With more diamonds flooding the market, the basic economic principle of supply and demand could lead to a significant decline in prices. As the market became saturated, consumers would have more options at lower prices, potentially shifting the perception of diamonds as rare and valuable commodities. This could have led to a revolution in how diamonds were marketed and valued, changing the dynamics of luxury and desirability associated with them.

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