Exchange: Social and the Market Principle

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Exchange is an essential, and multifaceted, part of economic systems. Types of exchange include market principle, prevalent in capitalist societies, redistribution, or moving goods to a center, and reciprocity, exchanging goods. One type of exchange that will be discussed is Kula exchange in Trobriand Islands. In this trading ring armbands, called mwali, are passed clockwise, and necklaces, called soulava or bagi, are passed counterclockwise from island to island in the Trobriand ring. This form of exchange most closely resembles a kind of balanced reciprocity, in which goods are passed between somewhat closely related individuals with the expectation of a return at some point. Another type of exchange that will be discussed is the coffee trade around the world, especially as it has become specialized in the last century. This kind of exchange most closely resembles a market principle, where items are bought and sold. While different, these varying types of exchange promote different relationships and hierarchies. Exchange is an essential part of what defines not only a person’s individual identity, but also their cultural identity.
Exchange leads to the formation and regulation of social connections and relationships. Kula exchange creates and maintains business and social relationships, shown in the works of Malinowski and Davis. These anthropologists describe a trade system in which men partner with men on other islands and are expected to trade only with these partners. The strict rules of Kula define these relationships and how they form, only after a man has bought his way into the ring. These business relationships become friendships, because the men end up spending large amounts of time with each other. Malinowski writes...

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...nciple can even apply to the exchange of coffee across international lines. Coffee moves from distant countries to warehouses in the United States to consumers. This exchange is only possible because people can interact through hierarchies of trade that have emerged through the specialization of coffee. Social relationships and personal identity are defined by types of exchange.

Works Cited

Kula: Ring of Power.
1991 Michael Balson dir. 52 mins. Sky Visuals.
Davis, John
1992 Exchange. Buckingham, England: Open University Press.

Malinowski, Bronislaw
2010 [1922] Argonauts of the Western Pacific: An Account of Native Enterprise and Adventure in the Archipelagos of Melanesian New Guinea. Oxford: Benediction Classics.
Roseberry, William
1996 The Rise of Yuppie Coffees and the Reimagination of Class in the United States. American Anthropologist 98 (4): 762-775.

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