Home >> Economy and Society >> Some forms of Simple Economic Exchange

Some forms of Simple Economic Exchange

Barter system-

It is direct form of exchange whether in return for services or goods.

Silent trade-

It was an exchange system where the exchanging parties do not know each other personally.

Jajmani system-

It is system of economic and social relationship existing between various castes in villages. The patron is known as jajman and the service castes are known as kamin.It is still prevalent in villages.

Ceremonial exchange-

It is a type of social system in which goods are given to relatives and friends on various social occasions. The main idea is to establish cordial relations between the various social groups.

Potlatch-

This term means gift. It is meant as a public distribution of goods made to establish certain claims of the giver and the recipients. It is based on the principle of reciprocity. Through this system the host declares his status to others.

Multicentric economy-

It is an economy using several media of exchange.

Kula -

According to Malinowski it is a ceremonial exchange participated by the inhabitants of a closed circle of Trobriand Island. It has no practical or commercial value. The system of exchange is regulated in a kind of ring with two directional movements. In clockwise direction,the red shell necklaces called Soulava circulate and in anticlockwise circulation the white arm shells known as Mwali circulate among the members of the Kula.Objects given and taken in Kula are never subjected any bargaining.