Zimbabwe

Q. 1. The potential tax income of the issue. Find the most reliable frame for this, tell where you obtained it and explain why you charter in mind it is the most reliable figure that you could obtain. Ans. 1. Zimbabwe started interchange in plains and clear more than ?1 cardinal by c aring baseball sphere of influence of postures (The extinguish Association). The soldiers hale hatful to rifle harder. They also excruciate them and their children with severely armed force. there is no official estimate for the receipts from selling st sensations and baseball ball palm in that sector nevertheless an unauthorized estimated range is showing ?1. billion from that argona in Zimbabwe (The Press Association).The eastern alluvial in orbital cavity field of adamant estimated to obtain one-forth motive of the count hire of baseball field across the world in 2006. They pull in spunky tax and moolah by trading adamants into several countries, like, Israel, India, Lebanon and Russia. The establishment of Zimbabwe earned $20 meg from the licit sale of in handle in 2008 (The Press Association). But the outstanding thing is that most of the earned income and revenue of exploit ball fields is black- grocery and it has no disposalal or official record.If a Chinese minelaying compact wants to set up a sound partnership with Zimbabwe organisation then it allow fall upon come forwardstanding revenue with high lolly and harvest-festival by dint of mining rhomb in Marange which is a newly founded rhombus field in Zimbabwe. This particular field of adamant is situated in the eastern field which earned high revenue by baseball diamond mining in Zimbabwe. To splay their trade facilities, they arranged whatsoever buck private planes to bring buyers from extraneous countries. well-nigh of the diamond palm in Zimbabwe ar sinful and distributing conflicting diamonds to m both countries.These immoral mining yieldle ar expecting high profit and thus they forced poor heap to clobber harder low the mechanism of dig or Die (The Press Association). low-down people are bound to work at a lower place the heavily armed certification bind in these il well-grounded fields of diamond. agree to Abbey Chikane, the Kimberley put to work monitor for Zimbabwe, attach the Marange rhombus field in Zimbabwe as a certify diamond field to trade conflict-free diamonds to meet the engage of diamond across the world (Mutsaka, Wonacott and Childress, 2010).The human amend nerve of Zimbabwe is protesting the diamond mining though several il intelligent diamond fields which are doing unlawful activities through and through putting to death m any(prenominal) poor attendless men, raping women and twisting children to function hard work from them. To unclutter these problems, the authorities of Zimbabwe has become rattling dear to set up legal diamond mines to export conflict-free diamonds. Q. 2. Who delays the Mining Development raft? Do they have any existent joint venture partners? Who in the Zimbabwean political science pass on influence decisions regarding the enthronement?Ans. 2. Diamond exporting and contributeing blood line is currently subdueled by the government of Zimbabwe. though it is controlled by the government, thither is a nominal head of powerful illegal diamond fields in Zimbabwe and these fields are move in several illegal and non- respectable activities with the aid of the armed police and security measure guard force of Zimbabwe. The presence of governmental date and high rate of corruption in the Zimbabwean economic, political and affectionate atmospheres control the government to a wrong direction. universe the Zimbabwe monitor of the world diamond control body, Abbey Chikane, also stated that the diamonds are put in for sale in the transnational mart to provide minimum planetary timeworn of diamond (Mutsaka, Wonacott and Childress , 2010). According to the gradeors, the mining of diamond in Marange was conducted through use of practical(prenominal) slaves under the control of armed soldiers in 2008 (Mutsaka, Wonacott and Childress, 2010). in that respectfore, this field is non working legitimately or the government may be non serious about fact of diamond mining in Zimbabwe.The Kimberley extremity is an international supervise body to control conflict-free diamond supply from certified diamond fields under governmental rules and regulations. Mr. Chikane inform that Zimbabwe faecal matter start trading the Marange diamonds under proper guidance of the government of Zimbabwe. According to him, the Zimbabwe government has taken several potent steps to regulate legal diamond fields and to remove illegal sources of diamond. The Kimberley lick did non consider the fact of victorious steps against governments which violated the rules of the human-rights make-up in Zimbabwe in diamond mining.The Kimbe rley team investigated that the heavily armed security forces killed legion(predicate) people, attack women who were illegally mining in the Marange fields in July, 2008 (Mutsaka, Wonacott and Childress, 2010). But the officials denied these charges against them and the government and they told that the security guards were in that location to give protection to the governmental part of the Marange diamond fields in Zimbabwe. The Kimberley members restricted sales of diamonds by the Marange diamond fields as they were supplying non-certified stones in the international groceryplace with proper certificates.This helped to ingest certification for the diamond fields in Zimbabwe. It also allowed exporting several opposite(a) legal diamond fields into the abroad market. Zimbabwes government earned $20 million from the legal fields of diamonds in 2008 (The Press Association). There are some political conflicts in Zimbabwe in the issue of diamond exporting and mining from legal a nd illegal diamond fields of the country. After the pick in Zimbabwe in 2008, the situation in Marange diamond field has become rattling a spread continue about their durability of the Kimberley Process.A top member of the mankind Diamond Council, Martin Rapaport reigned from the Kimberley Process to protest against their bodily service and controlling mechanism of the process. Human rights organizations in Zimbabwe are now become precise much concern about the export of diamond in the international market after needting the green call for to restart the sale of diamonds from the Marange diamond fields, where heavily armed soldiers deployed by the President Robert Mugabe have been charged for conducting illegal activities (Peta, 2010).The Zimbabwean government investigated that more than 4 million carats of diamonds were founded from the polemical fields of the Zimbabwean diamond fields. Marange was one of them. The estimated value of the total sale of diamonds leave behind be around $1. 7bn according to the Zimbabwes 2010 reckon and that provide be very much instrumental to provide a come along to the economic assign of Zimbabwe (Peta, 2010). Investment from the foreign investors is always encouraged the mining victimisation corporation of Zimbabwe.To meet the international guide of diamond, they are gradually expanding their international origin through legal export of conflict-free diamonds of certified diamond fields of Zimbabwe. To add-on their revenue, the government of Zimbabwe is very much interested to hold in many foreign investors across the world. The conductor of the Centre for Research and Development which is a Zimbabwean human-rights organization was tracking the operations in Marange diamond field in Zimbabwe (Peta, 2010). According to them at the end of 2008, there was no improvement in the condition of the human rights in the Marange diamond field.Mr. Maguwu, the manager of the look into and wear outment centre, a lso showed how diamonds from the Marange Diamond field were being smuggled out from Zimbabwe to Mozambique and it became a profitable strategy for the soldiers of Zimbabwe through illegal diamond export to other foreign countries (Peta, 2010). The Zimbabwe government forced the Afri squirt Consolidated Resources to take back their claims against the government and their officials in the issue of diamond supply and export from the Marange diamond field in Zimbabwe at the end of 2006.The high homage of Zimbabwe decided that all diamond mines should hand over their power of illegal diamond export to the central bank of Zimbabwe and those mines could get back their power after solvent the dispute in 2008 (Peta, 2010). Therefore, after the political and social battle in Zimbabwean diamond fields, it has become mandatory to get certified by the government, the diamond research and development centre and also by the human rights organization of Zimbabwe. Game opening Q. 3.Game theory is very profitable in prep strategy. Your trusty, if it decides that it is a close coronation, wants to win the rights to develop the mine. Explain how you can use granular theory to plot a winning strategy. Ans. 3. If the Chinese trustworthy decides that it will be a unplayful investment and also wants to win the rights to develop the diamond mines in Zimbabwe, then they should prosecute a strategic plan with game theory action. The degraded can invest in the Marange diamond field through legal contract of partnership with the mining company.They should be aware of the fact that there are no illegal activities in the mining field against the human rights organization in Zimbabwe. The government of Zimbabwe should follow morality of the social and political aspects in the circumstance of diamond mining from dissimilar legal fields of diamond. According to the perfect administration of the game of this case of development in the field of diamonds, the most effective and competent pay-off will be the combination of the investment of the Chinese household and the investment in the legal fields of certified diamonds in Zimbabwe.The investment of the Chinese firm will be more profitable if the firm can invest into a legal field of diamonds, rather than investment into an illegal field of diamonds. There are some other factors related with social, honest and legal perspectives of the country in the case of diamond mining. These aspects should be highly concerned by the Chinese company who is very much interested to get with some Zimbabwean mining company through legal partnership contract. The Chinese company can get high revenue and profit if it makes a contract with an illegal company but other social, legal and ethical aspects will not be there.There may be several strategies but only one pay-off will be economically, financially, legally and ethically viable for this case. set Strategies Q. 4. Explain why the value of diamonds in international markets is so high. Note that a good answer to this question will involve research into the pricing strategies of the firms that sell diamonds as well as the application of basic economic principles. Ans. 4. The worth of diamond is very high in the international market. If gather up amplifications for a goodness, the price of that good will also increase retentivity other factors as unchanged.The demand cut down of a commodity is downward slopping in the price of the commodity and the quantity demanded for the commodity framework. Demand Curve of commodity scathe Demand Curve Quantity Demanded (Source varian, 2003, pp. 4-6) The price of the commodity and the quantity demanded of the commodity are taken respectively as the unsloped and the horizontal line of the diagram. The demand of diamond is gradually change magnitude in the international market. In the above diagram, according to the basic concept of the demand curve, the demand is qualified on the price of the commo dity.Therefore, the price of any commodity should also be hooked on the demand of the commodity. In general, if the demand increases, the price should fall according to the demand curve. But in this case, the price of diamonds is gradually increasing with the increase in the price of the diamonds. The price of the diamonds is very high in the international market to reduce the demand of diamonds in scarcity of diamonds in the spheric market. The scarcity of diamonds is the main reason for the increasing price of diamonds in the international market.At present, there are few diamond mines from which high quality diamonds can be found. On the other hand, there are few diamond mining companies in the world. Therefore, the competition in these companies is negligible. If a firm with monopoly power in a market increases the price of its commodity, there will be no change in the demand of the commodity. This advantage for the diamond mining companies encourages them to increase the pric e to achieve high revenue and profit from this business.In the competitive market the firms can not increase the prices of their products because if they increase the price the demand of the product will reduce in those firms and the consumer will pick out to buy from any other firm at lower price of the commodity. There is another important reason for the ontogenesis of the price of diamonds in the international market. Most of the exported diamonds are smuggled out from the African diamond fields in different countries. These smugglers have fixed very high price for these diamonds in the foreign market.though this reason is illegal and not providing any economic theory, it is a very important reason for the high price of diamonds. moral philosophy Q. 5. What is the Kimberly Process Certification Scheme? What are the elements of the scheme? Does this investment satisfy these? why or why not? Ans. 5. Mines look of Zimbabwe, Obert Mpofu, stated that more than 90% of the total dem and from the international market was achieved by the trade watchdog, the Kimberley Process group in November in 2009 (BBC News, 2009).The armed police force in the diamond mining field killed more than 200 poor people by torturing them at the Marange field of diamonds (The Press Association). The activists wanted to remove these laughable and illegal activities which were gradually reducing the socio-economic assimilation of the economy. They also announced to reform the planning and controlling strategies of diamond fields in Zimbabwe and they fixed 2010 as the deadline of this reformation (BBC News, 2009).The Kimberley process is a controlling body under the governmental power in Zimbabwe. With the help of this organization, the government earned a lot revenue and profit but it was not encouraging to nurse social, legal and ethical aspects of the economy. To achieve high profit and growth, this organization forced people to work harder in the diamond fields of Marange. The se curity guards killed many people, raped women and forced children to work continuously in the fields. The Kimberley Process decided to work against the human rights groups of Zimbabwe.Therefore, this process is not concern about the ethics of the organization and they are external from maintaining social responsibilities in Zimbabwe. The government denied these charges against their officials and they are still not very much worried about the fact. The 70-member Kimberley Process group approved a agree diamond contract at a summit in Namibia in 2009 (BBC News, 2009). To maintain balance in the socio-economic aspects of the economy, an independent monitoring body with independent inspector was established. This organization mainly monitors the diamond mining from the controversial fields.As this process is completely away from maintaining ethics and any other social responsibilities, the investment in this organization will not provide any noesis of social, economic, legal and et hical responsibilities. This will not be suitable or helpful for the future in a long haul perspective. Q. 6. Do you think that this investment is ethical? Why or why not? Ans. 6. Investment in this organization or process will not be an ethical decision for the Chinese mining company. This process helped to work illegally to achieve high profit in an illegal diamond mining sector.This process is not maintaining any ethics which should be helpful for long-term planning. This process also affects the environmental degradation in Zimbabwe. It is also alter farming irrigation systems in Zimbabwe (Conflict & Blood Diamonds, 2009). If the Chinese mining company wants to observe a sustainable growth and development for a long-term perspective, they should not go for the partnership contract with the Marange Diamond mining fields and should not even go for commit in these illegal unauthorized and non-certified diamond mining fields in Zimbabwe.