top of page

Pros and Cons of Mining Diamonds and Selling Quickly

Question

Should a country mine all its diamonds and sell them as quickly as possible?

Category:

Economic Systems

Preview Answer

STEPS TO WRITE ESSAY 💡MAIN POINTS💡OVERVIEW

I. Introduction
- Brief overview of the importance of diamond mining for a country's economy
- Thesis statement: While there are benefits to mining and selling all diamonds quickly, there are also drawbacks that must be considered.

II. Benefits of mining and selling all diamonds quickly
- Increased income, employment, and living standards in the short term
- Increased government tax revenue for infrastructure spending
- Improved current account position through increased export revenue
- Greater incentive to supply now due to high demand and prices
- Improved economies of scale and lower costs through higher output

III. Drawbacks of mining and selling all diamonds quickly
- Depletion of diamond stocks and inability to produce in the future
- Risk of lower demand and prices in the future
- Potential reduction in revenue due to increased supply and lower prices
- Over-dependence on diamonds as a source of income
- Potential for future cost reductions through technological advances
- Risk of environmental damage through over-mining
- Potential for higher employment and GDP in the long run through sustainable mining practices

IV. Conclusion
- Recap of the benefits and drawbacks of mining and selling all diamonds quickly
- Emphasis on the importance of considering long-term sustainability and economic diversification
- Final thoughts on the best approach for diamond mining in a country's economy.

Ops... End of preview!

Already purchased Economics Study Pack subscription? Amazing! Click below

What's included 
 
✔️Full essay
✔️Tips
✔️Diagrams
✔️Marking Schemes
✔️Examiner's report

Economics Study Help
bottom of page