IS THE DIAMOND CAPITAL OF THE WORLD LOSING ITS SPARKLE?
DIAMOND TRADING AND CUTTING IN A CHANGING GLOBAL ECONOMY.
Study Questions
1. Use Exhibit 5 to describe and analyze the changing status of Antwerp as a cutting and trading center. Discuss how Antwerp lost it s lead as a cutting center and what, if
anything, Antwerp could do to fight it.
2. What were Antwerp’s strengths as a worldwide trading center? Consider that diamond-trading centers historically did not emerge in the mining countries. On which dimensions could Dubai challenge Antwerp?
Comment on how the following observation could affect Antwerp. In 2004, Dubai
registered $883 million imports of 28.2 carats of rough diamonds at an average price of a little above $30. The same quantity was reportedly exported at twice the value without much processing. Some of the diamonds were coming from countries with export taxes.
3. How would you explain the structure of relatively small, family-operated trading
companies in Antwerp, and more generally, in trading and cutting centers around the
globe?
4. Going forward, what should the strategy of Antwerp’s traders and of their umbrella
organization, the HRD, be in light of the future challenges that are mentioned in the case?
