X. Bao- Week Five- System of Exchange

Exchange of good and services can be defined as the network that allows trade. Exchange of goods and services has been going on for a long time as far as I can remember. People cannot survive without exchanging goods and services as no man is an island. Since our fore fathers exchange of goods has been a key issue and which man cannot survive without. The economic system has various components which are production and distribution. The society deems distribution as the manner in which goods circulate through the society as per the lecture which makes perfect sense.It says that there exists some ways of distributing or moving things or goods and services which include reciprocity, redistribution and market exchange.

Reciprocity which is also known as reciprocal exchange where the author says that it entails exchange of goods and services between two parties that are based on obligations. He says that the exchange of products gifts and objects. He says that the most important is that these exchanges are made to satisfy material needs and also leads to solidification of social relationship. This type of exchange is characterized by equal status of parties; it may also include other forms of which are known as trading partner. He gives an example of the Kula ring which dealt with exchange of gifts like arms go one way and necklaces go the other way. The exchange of these goods followed accrual of different circular rotation and each time they exchange the commodity has added value. The value was increased not because the object because it carries with it the history of its exchange.

The other kind of reciprocal was the North West coast pot latch which was carried differently by geographical and space as it was west coast of America. Where families accumulated large amount of food and the valued was gathered in that the more you gave more the higher you rose in the social status. Here the givers and receivers depended on one another and was also a way of increasing the obligation. It shows how the reciprocal worked in the distribution of good and services at that given time in history.

The other mode of distribution of goods and services was the barter system that was characterized by direct exchange of different objects, this system of distribution did not create ongoing relationship like reciprocal, was also used to exchange when cash is not available. It goes on to show the crucibles of barter trade where they exchanged good for goods.

Marketing exchange is another distribution which has the following characteristics like exchange of goods or services for money at prices determined by supply and demand, the buyer does not need any other social relationships with the seller, profit making is at the core of the system depending on the presence of money, economic behavior is evaluated according to the market but is linked to industrialized and urban societies.

Re-distribution is the collection of goods by a central authority followed by distribution according to normative or legal principles.The above shows that the lecture covered a wide range of information and has gone to show the mediums of distributing information from people which are current and those of the past.

One thought on “X. Bao- Week Five- System of Exchange

  1. In your posting, I find out that you mentioned that network made a very huge distribution to the exchange of goods and services all over the world. And I agree with it very much. Within the help of the Internet, we could get known of the traditions of one country that you have never been over there, or we could make the purchase of the souvenir all over the world on the Internet. Analyzing the advantages and disadvantages of marketing exchange, could help one to put forward the projection and have referential values for the market. Nowadays, the marketing exchange still need to be consummated, because there are still a lot of dishonest activities happened and disrupted the order of the market, especially on the Internet. For example, some people post their goods online, but the photos online are different from the goods that the customer received. Although there are a lot of those kind of situation, in another hand, spanned the planet, market exchange did rationally allocate resources, and make the contribution to the exchange of the services and goods.

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