The purchase price to Sierra Leoneans is lower than the "fair market value" they would obtain from legitimate, competitive buyers. The discount is typical of any gray or black market.
• Inequities in resource distribution. The allocation of value in the chain from digger to exporter is exploitative... displayed 300 characters
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The full value of diamond purchases does not circulate in Sierra Leone to generate more wealth.
• Lack of reinvestment: This is similar to the multiplier effect, but is an additional problem, over and above the lack of spending in the economy, which is the demand side of the issue.
The solution can be summarized simply... displayed next 300 characters
This is due to the fact that buyers will exercise their power of buying and move to other supermarket retailers if prices are too high. For example if a can of baked beans is price too high in the Tesco
Many (perhaps all) market segments in the industry are supplied with the emphasis placed minimising costs. If the achieved selling price can at least equal (or near)the average for the market, then the lowest-cost producer will (in theory) enjoy the best profits...
The strategy of its competitors was to price their strapping at a consistent discount to Signode and although their products were undifferentiated they were soon breathing down heavily on Signode?s neck ? because the change in the business environ was to appreciate price discounts above service...
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