Reference no: EM131913467

South Africa is home to huge reserves of coal, gold, diamonds, and natural gas. In addition to their intrinsic value, gold and diamonds have many industrial uses. Precious mineral mining has transformed South Africa into a major emerging market economy. To handle international shipping, the government developed major ports that connect South Africa to markets worldwide. South Africa is also home to a large pool of low-wage workers in mining and related industries. The government has devised a collection of plans that support specific industries, especially mining. These developments support a cluster of highly specialized firms in the mining and extractive industries. Some of the world's most knowledgeable firms in these industries are concentrated in South Africa, especially De Beers SA (www.debeers.com). De Beers has substantial capabilities in marketing and international strategy and a near-monopoly in the global diamond industry. The firm collaborates with MNEs that hold major financial resources. Use the theories discussed in this chapter (Chapter 5) to explain the advantages held by South Africa and De Beers. What insights emerge from these theories that shed light on South Africa and De Beers?