South Africa is home to huge reserves of coal, gold, diamonds, and natural gas. In addition to their intrinsic value, gold and diamonds have many industrial uses in which South Africa is the world leader. Mining precious minerals has transformed South Africa into a major industrial state and financed modern transportation and communications systems. To handle international shipping, the government developed major ports that connect South Africa to markets around the world. South Africa is also home to a large pool of low-cost workers in mining and related industries. The government has devised a collection of plans that support specific industries, especially mining. These developments support a cluster of highly specialized firms in the mining and extractive industries. Some of the world’s most knowledgeable firms in these industries are concentrated in South Africa, especially De Beers SA(www.debeers.com ). De Beers has substantial capabilities in marketing and international strategy and a near-monopoly in the global diamond industry. The firm partners with MNEs that hold major financial resources. Use the theories discussed in this chapter to explain the advantages held by South Africa and De Beers. What insights emerge from these theories that shed light on South Africa and De Beers?