Non Exchange Exchanges And Non Market Exchanges

These types of exchanges are rather strong in real life and tend to create enduring links. Many of these social exchanges are readily recognized and described by those taking part in them through speech. For instance, the reference to such words as "indebted", "owe", among others, points to the exchanges that take place in real life.

The anthropology of gifts is also crucial to economics. Entire businesses and industries rely on gift giving as it helps understand the relationships in economy as a cultural system that is not just

The 1976 documentary film Ongka’s Big Moka is a prime example to explicate the resemblance of gift economy and creditor-debtor relationship with regard to interest. Moka is a ritual of gifting in tribes of the Mount Hagen area in Papua New Guinea. Pigs as well as other live stocks, cassowaries, scarce pearl shells, and as the modern civilization gradually penetrates into the tribes, cash and automobiles are given away at the ceremony. Giving away food and gifts is translated to status and rank. The greater the value of the gifts and the scale of the feast are, the greater the power it brings to the host of the moka. The receiving tribe tries to repay the gift to recover its prestige by hosting another moka with more generous gifts and a more

Though one may favor exchange processes that conclude with a social association that values the idea of equality, however Blau states that exchange processes can “give rise to differentiation of power” (Blau 1964: 114), which results with relation to superordination and subordination. Blau explains this disequilibrium as a result of needs for resources from unlike partners and efforts among equals to gain advantages over the other (Blau 1964: 114). Relating to intrinsic rewards, if one counterpart gains a reward from the exchange, the other counterpart expects repayment in the form of future wards – hence the principle of reciprocity (Blau 1964: 121). Reciprocity between unlike counterparts creates this sense of imbalance

Before the great transformation, no economy was subject to being a prisoner of the market (Polanyi 43). Polanyi discusses previous forms of economic organization that function effectively without the system of markets (43). It can be said that through the social being of man and his relationships, that he values material goods only as they serve to an end (Polanyi 46). Within Tribal communities, each member takes on the ideology towards noneconomic ends, that is, not connecting the means of production or distribution in significance with the ownership of goods (Polanyi 46). Members of the tribe place no desire upon economic interests of the individual, but rather on the collective. Reciprocity and redistribution are certain behaviours that communities maintain (Polanyi 47). Reciprocity, regards the sexual organization of society, and redistribution is functioning under a common chief representing domain and authority

Synchronously, the developing economies such as some Asian and South American regions which exported their experienced workers to the overseas market can also reduce the unemployment pressure that governments must face in long-term period. On the other hand, international remittances are beneficial for both migrant-sending and migrant-receiving countries. Statistics discovered that the international remittances transmitted to the homeland of 35 to 40 million migrant workers are currently estimated to be about US $66 billion per year, and represent the second largest international monetary trade flow, exceeded only by petrol (Sasikumar 2001). For the countries which exported labour to rich countries, they would gain enormous exchange funds from international remittances and regard the money as foreign investment to facilitate their economic development. By contrary, for these migrant-receiving countries, the outflow of vast domestic currency would take away some financial threats such as malignant inflation to a great extend. Nay, the popularization of one country's currency could also accelerate its economic fluidity and strengthen its economic influence to the other countries.

In everyday interactions people are always looking to have a positive experience among those with whom they interact. According to the Social Exchange theory, with each interaction an individual has with another, that individual attempts to maximize the positive outcomes and minimize the negative. The purpose of this paper is to apply the Social Exchange theory to an authentic real life situation to best illustrate the theory and the key concepts that it holds. In applying the social exchange theory from demonstration, to application, to then explanation, a better understanding in

The three modes of exchange are reciprocity, redistribution, and market exchange. These modes of exchange are cross-cultural. Reciprocity is the oldest and most historic method of exchange. Reciprocity is alike many egalitarian societies. One example of these

In exchange theory, a human being’s behavior has been perceived as a logical decision where one tries to optimize benefits while minimizing cost or pain. According to different sociologists, when someone engages in a social interaction they tend to weigh the reaction of other people about what they are doing or saying and their behaviour will be dictated by the behaviour of others. This, somehow, is similar to what we are seeing in Canadian marriage where a man’s or woman’s involvement in marriage is determined by economic factors (Hou & Myles,

2005: 70). In more recent times, colonial interference with its autocratic removal and relocation of key individuals and whole groups resulted in virtually a complete collapse of the traditional Aboriginal economy. As hunting and gathering is no longer possible for city dwellers, the concept of reciprocity becomes even more important, from an economic point of view, due to the nature of extended families all co-habiting in one small dwelling because of mutual obligation or reciprocity. According to Smith (1991) household structure has to stretch to encompass the extra-household fiscal networks it now accommodates. One must consider the concept of reciprocity or mutual benefit to obtain an understanding of domestic expenditure patterns.

The step-by-step process of the potlatch was initiated by the “congregation of people who were formally invited to witness a demonstration of family prerogative of a host group comprised of kin or local residences” (Barnett 349). It was then stipulated that “only one person assumed the role of host and donor of gifts, and any members of his localized kinship group could voluntarily support him in the preparations of a potlatch in return for patronage favors” (Barnett 350). Following this stipulation “there was an unequal distribution of gifts which were presented according to rank of the receiver, and which reflected the donor's judgment of the recipient's social worth” (Barnett 354). Next the “potlatch allowed the donor to make a claim in his family name to certain distinctions and privileges. The recognition of these claims must come from the other members of society" (Barnett357); to which Barnett highlights “was the ultimate goal of the potlatch” (Barnett 357). Lastly, “although the gifts did provoke a reciprocal response, they should be viewed as true gifts and not as loans or capital investments; the ultimate aim was the distribution of wealth and not the accumulation of wealth”

The Social Exchange theory proposes that we make decisions with the goal to maximize benefits and minimize costs (Newman, 2009, p.64). The choices we make require social approval and self-sufficiency. A family will make sacrifices if they perceive the action will equal rewards. Basically the theory refers to a give and take relationship where there needs to be balance for the relationship to be satisfying.

Informal social control is defined as the way one “a form of social control that develops independent of formal institutionalized structures created for the explicit purpose of guaranteeing conformity to social norms” (Burfeind &Westermann, 1991, 35). For example, in America family does not have the same level of influence on someone’s life as it does in Japan and China. In Japan family is such an integral part of life that individuals are absolutely dependent on their family and vice versa (Burfeind &Westermann, 1991, 38). In China, there is a similar level of dependence and responsibility to family making their influence and feelings a prominent form of social control. Next, in America money is a steeply influential form of social

Social Exchange Theory – Social behavior exchange theory is an exchange between parties as a representative of consent and status (Homans, 1958, p.

Remittances typically refer to transfers of money by foreign workers to their home countries. Remittances are not a new phenomenon in the world, being a normal associated to migration which has always been a part of human history. Remittances are playing an important role in the economies of many developing and low income countries. Pakistan is a labour abundant country; hence, as neoclassical theory shows, if workers are unable to find jobs and/or wages to satisfy their needs, they will look elsewhere. Pakistan’s history provides us with a new trend of emigration nearly each decade. Remittance is an important source of foreign exchange earnings for Pakistan since 1970. During the past four decade Pakistan received