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Case Study: Theory Application in South Africa

South Africa is a nation with major mining operations and huge reserves of diamonds. It is also home to the worlds biggest gold fields, in the Transvaal region. In addition to their intrinsic value, diamonds and gold have numerous industrial uses in which South Africa is the world leader. Mining precious minerals has transformed South Africa into Africas leading industrial state. The newfound wealth financed modern transportation and communications systems. Subsequent mining activities revealed the existence of immense reserves of coal and iron ore. To handle international shipments, the government developed major ports that connect South Africa to world markets. Most recently, large quantities of natural gas were discovered offshore. South Africa is home to a large pool of low-cost workers in mining and related industries. The government has devised various plans that support particular industries, especially mining.

These developments have led to the emergence of a cluster of highly specialised firms in the mining and extractive industries. Some of the most knowledgeable firms in the world in these industries are concentrated in South Africa, particularly De Beers S.A. De Beers has partnerships with large MNEs that hold major financial resources. The firm has substantial capabilities in marketing and international strategy.

Question: Which of the theories (refer to Topic Overview via Moodle) discussed in this topic help explain the advantages that South Africa and De Beers SA hold?

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