The group that united in 1890 to buy and sell all of the output of the major diamond producers, including De Beers, was the?

The group that united in 1890 to buy and sell all of the output of the major diamond producers, including De Beers, was the?

• A. De Beers Board
• B. Transvaal Diamond Exchange
• C. London Diamond Syndicate
• D. Diamond Dealers Association

Answer: (C)

The main idea here is how a cartel can control a commodity market by uniting producers under a single buying and selling authority, using a central hub to coordinate output and prices. In the diamond world, a group formed to purchase all the output from major producers and then market it to the world effectively gives itself the power to set terms, smooth out price swings, and limit competition. London Diamond Syndicate fits this pattern. It was formed to bring together the major diamond producers, including De Beers, so that virtually all diamonds would pass through a single coordinating body based in London. By pooling supply and controlling how and when diamonds were sold, the syndicate could influence prices and secure favorable terms for its members, which is exactly the function described in the question. Other options describe different kinds of organizations—an internal board, a local exchange, or a dealers association—that don’t fit the idea of a single, central group purchasing and marketing all output from the major producers.

The main idea here is how a cartel can control a commodity market by uniting producers under a single buying and selling authority, using a central hub to coordinate output and prices. In the diamond world, a group formed to purchase all the output from major producers and then market it to the world effectively gives itself the power to set terms, smooth out price swings, and limit competition.

London Diamond Syndicate fits this pattern. It was formed to bring together the major diamond producers, including De Beers, so that virtually all diamonds would pass through a single coordinating body based in London. By pooling supply and controlling how and when diamonds were sold, the syndicate could influence prices and secure favorable terms for its members, which is exactly the function described in the question.

Other options describe different kinds of organizations—an internal board, a local exchange, or a dealers association—that don’t fit the idea of a single, central group purchasing and marketing all output from the major producers.