Question 1 : What is meant by the phrase ‘invisible hand’ ?
Answer : ‘Invisible hand’ is a term used by Adam Smith to describe the natural force that guides free market capitalism through competition for scare resources. According to Adam Smith, in a free market each participant tries to maximise self-interests.
Each person looks only to their own self-interest, but in the pursuit of this self-interest, the interests of all or of society also looked upon. In this sense, it seems that there is a presence of some sort of an unseen force that converts what is good for each individual into what is good for society. This unseen force was called the invisible hand by Smith.
Question 2 : How does a sociological perspective on markets differ from an economic one ?
Answer : Difference between economic perspective and sociological perspective on market are as follows :
- Economic approach is aimed at understanding and explaining how markets work in modern capitalist economies while sociological approach is based on the phenomena of how economic advancement will be beneficial for the society.
- Economic perspective assumes economies to be a separate part of society because it has its own laws to guide. However, sociologist study economic institutions and process within the larger social framework.
- Economic prospect study upon individual buyers and sellers and supports economic philosophy or laissez-faire or free market while sociologist view markets as specific cultural formation of social institutions. According to them, markets are often controlled by particular social groups or classes which have specific connections to other institutions, social processes and structures.
Question 3 : In what ways is a market-such as a weekly village market – a social institution ?
Answer : Though markets are places of economic interaction, since they are based on a particular social context and social environment, sociologists regard them as social institutions where a specific kind of social interaction take place. For sociologists, markets are socially constructed and embedded. The weekly haats are its prime example.
- The periodic markets (or weekly markets ) give a chance to people from surrounding village to interact with each other, while they sell their goods.
- They link the tribal economy to that of the outside and established tribal and non-tribal relations.
- The layout of the market such as that of the Dhorai indicate a hierarchal inter group structure.
Question 4 : How do caste and kin networks contribute to the success of a business ?
Answer : In the pre-colonial period, India had an extensive trading connection, not only within the country but also outside. These trading connections were made by merchant groups who did extensive internal and external trades. The trading merchants as such were mostly organised as a community based on their same caste or kinship. They did business on the basis of trust, loyalty and understanding that prevailed within their community.
An interesting illustration of the use of traditional joint family structure and kinship and caste networks to build their business can be seen in banking and trading activities or Chettiars of Tamil Nadu. They controlled trade and banking all over South-East Asia and Ceylon (new Srilanka) in the 19th century and operate as joint family business. This is a typical patriarchal structure of joint family but they used trust, unity and goodwill of kinship to build their connections. Apart from the Chettiars, there are also Marwaris who work under he same ideals.
This gives its idea that Indians had their indigenous version of capitalism, when they ran business for profit, which was centered around caste and kinship.
Question 5 : In what ways did the Indian economy change after the coming of colonialism ?
Answer : The arrival of colonialism in India produces major disturbances in the economy, causing disruptions in production, trade and agriculture. Some of the changes are :
- A well-known impact of colonialism is the destruction of handloom industry due to flooding of the market with cheap manufactures textiles from England.
- In the colonial era, India began to be more fully linked to the world capitalist economy.
- Before colonisation India began a major supplier of manufactured goods to the world market. After colonisation, India became a source of raw material and agricultural products and a consumer of manufactured goods which benefitted industrialising England.
- With the expansion of market economy in India, new opportunities came to merchant communities who used them to improve their position in the society.
- In same cases new communities like the Marwaris emerged as a powerful and popular business community.
Question 6 : Explain the meaning of commoditisation with the help of examples . (Delhi 2015)
Answer : Commoditisation is a process by which things that were earlier not sold in the market enters the market as a commodity that can be bought and sold. In the present world, one can find many example of things that have become commodities. Some of them are :
- Labour or other services and skills can be easily bought in exchange of money.
- Salve trade and the sale of kidneys are two controversial commodities that had been prevalent in the society. But both of them are considered to be immoral.
- With the presence of professional marriage bureaus and websites, the institution of marriage has become a commodity.
- Coursed on personality development, spoken English, etiquettes and manners, etc. show that such things that were taught in the family have now become commodities.
- The commoditisation of water was bottled water.
Question 7 : What is a status symbol ?
Answer : Max Weber coined the term ‘ status symbol’ as a perceived visible symbol, external, denotation of one’s social position and perceived indicators of economic or social status. Many luxury goods are often considered status symbols.
Question 8 : What are some of the processes included under the label globalisation ?
Answer : Some of the processes included under the label globalisation are as follows :
- In the era of globalisation, the world becomes increasingly interconnected not only economically but also culturally and politically, Under globalisation, not only money and goods, but also people, cultural products and images circulate rapidly around the world.
- The main feature of globalisation is the increasing extension and integration of markets around the globe. This means that changes in a market in one part of the globe impacts other markets.
- Further the software services industries and Business Process Outsourcing (BPO) industries (such as call centers) are some of the major avenues through which India is getting connected to the global economy. Companies based in India provide low-cost services and labour to customers located in the developed countries of the West.
Question 9 : What is meant by ‘liberalisation’ ?
Answer : Liberalisation is the process whereby state control over economic activities are minimised and left to the market forces to decide. In general, it is process of making laws more liberal and loosening of government rules and regulation on capital labour and trade.
Privatisation of public sector enterprises, selling companies, a reduction in tariffs and import duties so that foreign good can be imported more easily.
- It includes privatisation of public sector enterprises.
- It allows easier access for foreign companies to set up industries in India.
- This is also known as marketisation or market based process to solve economic, social or political problems.
Question 10 : In your opinion, will the long term benefits of liberalisation exceed its costs ? Give reasons for your answer .
Answer : The changes that have made under the liberalisation programme have stimulated economic growth and opened up Indian markets to foreign companies. Increasing foreign investment is supposed to help economic growth and employment. The privatisation of public companies is supposed to increase their efficiency and reduce the government burden of running these companies.
However, the impact of liberalisation has been mixed. Many people argue that liberalisation have had or will have a negative impact on India.
As I think, the costs and disadvantages will be more that the advantages and benefits, so as some sectors of Indian industry like software and information technology or agriculture like fish or fruit may benefit from access to a global market, but other sectors like automobiles, electronics or oilseeds will lose because they cannot compete with foreign products and producers.
Objective Type Questions
Multiple Choice Questions
Question 1 : What is the name of Adam Simth’s book ?
(a) Nation is Wealth
(b) Wealth and Health
(c) Tribal Wealth
(d) The Wealth of Nation
Answer : (d) The Wealth of Nation
Question 2 : ________ refers to the place where things are bought and sold, a gathering of buyers and sellers or a category of trade or business.
Answer : (a) Market
Question 3 : Alfred Gell’s Dhorai market layout symbolises the ______ social relations, going beyond to economic function.
(c) Jajmani System
(d) Hierarchical inter group
Answer : (d) Hierarchical inter group
Question 4 : Traditionally, ________ were the business communities.
Answer : (c) Vaisyas
Question 5 : _________ allowed merchants to engage in long distance trade.
Answer : (b) Hundi
Question 6 : The most famous of the early political economist was Adam Smith, who in his bool, _______ attemped to understand the market economy that was just emerging at that time. Smith argued that the market economy is made up of a series of individual exchanges or transactions, which automatically create a functioning and ordered system.
(a) The Theory of Moral Sentiments
(b) The Wealth of Nation
(c) Lectures on Jurisprudence
(d) Wealth and Health
Answer : (b) The Wealth of Nation
Question 7 : Sociologist’s view markets as social institutions that are constructed in culturally specific ways. For example, markets are often controlled or organised by particular social groups or classes, and have specific connections to other institutions, social processes and structures. Sociologists often express this idea by saying that economies are socially _________ .
(a) ‘ consolidated’
Answer : (c) ’embedded’
Question 8 : Smith supported the idea of ‘ free market’, that is a market free from all kinds of regulatuon whether by the state or otherwise. This eonomic philosophy was also given the name laissez-faire.
What is the meaning of laissez-faire ?
(a) Leave alone
(b) Stay together
(c) Not to do anything
Answer : (a) Leave alone
Question 9 : According to ________, the anthropologist who studied Dhorai, the market has significance much beyond its economic functions. For example, the layout of the market symbolises the hierarchical inter-group social relation in this region.
(a) Max Weber
(b) Karl Max
(c) Adam Smith
(d) Alfred Gell
Answer :(d) Alfred Gell
Fill in the Blanks
Question 10 : The _______ according to Adam Smith is an unseen force at work that converts what is good for each individual into what is good for society.
Answer : Invisible hand
Question 11 : According to Karl Marx _______ is a system of commodity production or production for the market, through use of wage labour.
Answer : Capitalism
Question 12 : ________ is a good or service that may be bought or sold in the market.
Answer : Commodity
Question 13 : Liberalisation is also called _______ .
Answer : Marketisation
True / False
Question 14 : Karl Marx always favoured capitalism.
Answer : False, Karl Marx always favoured free market.
Question 15 : Non-matket exchange systems did exist in many villages and regions, even during the pre-colonial period village of India.
Answer : True
Question 16 : ‘Vaisyas’ constitute one of the four varnas- indicating it as the only merchant and trade or business class in Indian society.
Answer : False, like the other varnas, ‘Vaisyas, is often a status that is claimed or aspired to rather than a fixed identity or social status. Although there are ‘Vaisyas’ communities, there are some other caste group that have entered into trade.
Question 17 : Support prices are the prices at which government agrees to buy agricultural commodities to ensure minimum income for farmers.
Answer : True
Correct the Statement
Question 18 : In rural India there are markets that take place at more frequent intervals.
Answer : In rural India there are specialised markets that take place at less frequent intervals.
Question 19 : One of the reasons for this caste-based specialisation is that trade and commerce often operate through monetary status.
Answer :One of the reasons for this caste-based specialisation is that trade and commerce often operate through caste and kinship networks.
Question 20 : The liberalisation of the Indian economy has been due primarily to the policy of globalisation is that was started in the late 1980s.
Answer : The globalisation of the Indian economy has been due primarily to the policy of liberalisation is that was started in the late 1980s.
Complete the Sentence
Question 21 : As in most ‘ traditional’ merchant communities, Nakarattar banks were _______ .
Answer : basically joint family firms, so that the structure of the business firm was the same as that of the family.
Question 22 : The Marwaris became a successful business community only during the colonial period, when ______ .
Answer : they took advantage of new opportunities in colonial cities such as Calcutta and settled throughout the country to carry out trade and moneylending.
Question 23 : Under the capitalist mode of production, labour itself becomes a commodity, _____ .
Answer : because workers must sell their labour power in the market to earn a wage.
Question 24 : Those who advocate marketisation believe that its steps will _____ .
Answer : promote economic growth and prosperity because private industry is more efficient than government-owned industry.
Very Short Answer Type Questions
Question 1 : What is ‘ invisible hand’ according to Adam Smith ? (All India 2015,2019 )
Answer : According to Adam Smith, the ‘invisible hand’ is like an unseen force at work that converts what is good for each individual into what is good for society.
Question 2 : What do you meant by the term laissez-faire ?
Answer : It is an economic philosophy that advocates free market system and minimal government intervention in economic matters. Simply, it is a French phrase meaning ‘leave me alone or let it be’.
Question 3 : What is the social aspect of market ?
Answer : The social aspect of market is that it is a place of social-interaction, cultural exchange and social interlinking of the people.
Question 4 : Which social groups of people are mostly present in weekly markets ?
Answer : Tribals. peasants, traders, moneylenders, government officials and rich people are mostly present in weekly markets. Tribals and peasants are people while moneylenders, traders are rich people.
Question 5 : Why caste based specialisation in trade is so popular in India ?
Answer : In india, caste and kinship have a very strong social presence. Businessmen tend to do business within their community due to strong community and better trust from the people of the same community. This is the reason why caste based specialisation in trade is so popular.
Question 6 : ‘Hundi’ played an important role in the traditional trading system. Give reasons. (All India 2009 )
Answer : ‘Hundi’ was a kind of bill of exchange (like credit note) which was an important instrument in long distance trade for merchants. It was carried among caste and kinship networks, thus, expanding the business.
Question 7 : What is the meaning of exchange in economic and social terms ?
Answer : Exchange in economic terms means a disposal and a receiving of goods and services. In social terms, exchange means giving and taking of ideas, thoughts and cultural beliefs, etc.
Question 8 : Define the Jajmani system . (All India 2011)
Answer : Jajmani system was a kind of system of non-market in which farm produce, goods and services were exchanged within villages without the use of money. The Jajmani system was also characterised by an unbroken hereditary relationship of various castes.
Question 9 : Define the term Globalisation . (All India 2008)
Answer : Globalisation is a process of interlinking local, regional, national and international markets. A central feature of globalisation is the increasing extension and integration of markets around the world.
Question 10 : What are the changes that have happened in the Indian industry as a result of globalisation ? (Delhi 2008)
Answer : Due to globalisation, many foreign companies came to India and Indian companies went to other countries. Now we can see many foreign branded goods which were not available previously.
The result of such process is mixed. While some sectors of Indian industry may benefit from access to global market, other sectors (like agriculture, electronics or oilseeds) lose to competition from foreign producers.
Question 11 : What does liberalisation means ? (Delhi 2013)
Answer : Liberalisation is a process where the state’s control over economy is relaxed or removed. these include privatisation of industries and removing government’s control over wages and prices.
Question 12 : What changes have taken place due to marketisation ? (All India 2017 )
Answer : Marketisation bought the following changes:
- It provides positive outcomes for more production.
- It also helped in enhancing financial stability.
Question 13 : What is meant by support prices ? (Delhi 2011)
Answer : Support prices help to ensure a minimum income for farmers because these are the prices at which the government agrees to buy agricultural products from farmers.
Question 14 : Mention any two adverse impacts of liberalisation. (Delhi 2015)
Answer : The two adverse impacts of liberalisation are :
(i) Some sectors of Indian industry (like software and IT) may be benefitted but sectors like electronics or oilseeds will lose various opportunities since they cannot compete with foreign producers.
(ii) Due to policy of liberalisation, government will have to either reduce or withdraw subsidies and support prices which will not be good for farmers.
Question 15 : In what ways can status symbol be identified ?
Answer : The status symbol is perceived as a visible external denotation of one’s social position in terms of economic or social status. Many luxury goods are often considered status symbols. Foe example : brand of a cell-phone, model of car, brand of a watch, etc. The term status symbol was coined by Max Weber.
Question 16 : In what way consumption pattern is related to status symbol ?
Answer : Consumption pattern is related to status symbol because product, goods or services which people buy and use are very closely related to their social status. It is an indicator of person’s wealth or higher social/professional status.
Short Answer Type Questions
Question 1 : Differentiate the sociological and economic perspective of market .( All India 2015)
Answer : According to the economic perspective of market, the purpose of a market is profit making. Adam Smith believed that the market economy is made up of a number of individual exchanges or transactions which helps in creating a functioning and ordered system. This involves trading, buying, selling. However, sociological perspective considers market in a culturally specific way.
This means that markets are usually controlled or organised by specific social groups. They consider market as a social institution involving trading, buying, selling, distribution, money oriented process, etc., social proceeds and structure.
According to sociologist, economies are socially embedded which are evident through weekly tribal market (haat) and traditional business community.
Question 2 : Explain the sociological perspective of the idea of ‘ laissez-faire‘ supported by Adam Smith.
Answer : Adam Smith in his famous bool ‘ Wealth of Nations’ argued that the market economy is made up of a series of individual transactions, which automatically creates a functioning and ordered system. The individual transactions take place when people work by looking at their own self-interest.
But by looking at own self interest, the interests of all of society is looked after. This happens when both buyers and sellers take rational decisions. Smith calls it an unseen force or ‘invisible hand’ that converts what is good each individual into what is good for society.
For this reason, he supported the idea of ‘laissez-faire’ i.e. let it be or free market. The laissez-faire according to Smith creates a society which is driven by individual self interest which works best.
Question 3 : In Agrarian societies, periodic or weekly markets are a central feature of social and economic organisations. Explain.
Answer : Agrarian societies are societies that are based on agriculture. The periodic or weekly markets are help on a fixed day where people from the nearby areas come to buy and sell agricultural produce.
Peasants sell their farm produce and buy manufactured goods that are not available in their village. Traders also come to buy goods and farm produce. Moneylenders, entertainers and astrologers offer their services in the market. Thus, these markets become the centre of economic activities in rural areas where agriculture is the main occupation.
These markets link different villages, regions and become an important place for social interaction also. These periodic markets link the villages to towns, cities and entire regions.
Therefore, the small agrarian societies are linked to wider social and economic network through the periodic markets.
Question 4 : According to Alfred Gell the markets has significance beyond its economic function. Explain. (Delhi 2019)
Answer : Market refers to a place where things are bought and sold. Markets can also be considered a physical place for the gathering of buyers and sellers.
We usually think that a market is an economic institution but sociologists view market as a social institution that is constructed in culturally specific ways and is socially embedded e.g., weekly tribal haat and traditional business community.
Alfred Gells says that the Dhorai market (adivasi village market in Bastar) has significance beyond its economic function. Its layout symbolises the hierarchical inter-group social relations. Thus, it is a representative of a social order of the society there it fulfills a lot of social functions, not just only economic ones.
Different social groups are located according to their position in the caste and social hierarchy as well as in the market system. The quality of social relations are expressed in the kinds of goods that are bought and sold, and the way in which transactions are carried out.
Question 5 : How the weekly markets changed their nature during the colonial rule in India ?
Answer : The weekly markets are a regular feature of the rural and tribal areas. These markets got gradually linked to a wider regional and national economy during the colonial rule. The Britishers wanted to exploit the rich forest resources and mineral wealth so they built roads to connect the villages to cities. This changed the economic and social set-up of weekly markets.
More number of people from surrounding areas could visit these markets which induced greater buying and selling. With new linkages, these markets became the hub of all economic activities and social interaction.
The variety of goods and services also increased in these markets. Tribal people got work in nearby plantations so the markets also became places to get tribal labours.
So the colonial rule changed the small tribal economies to wider markets. Though the negative consequence was that traders and moneylenders from outside the local area led to the impoverishment of tribals.
Question 6 : Highlight the role of colonialism in the emergence of new business communities, with the help of any one example. (Delhi 2008)
Answer : Colonialism in India brought number of changes in economy and its society. India became a well-known handloom hub to a source of raw materials and agricultural products. At the same time, new groups (especially Europeans) entered into trade and business and sometimes in alliance with existing merchant communities.
In some cases, new communities emerged to take advantage of the economic opportunities provided by colonialism. A good example of this process is the Marwaris business community in India. They took advantage of new opportunities in colonial cities such as Calcutta and settled throughout the country to carry out trade and money lending.
Question 7 : Do you agree that all sections of people have benefitted from the liberalisation policy in India ? Justify your answer with example.
Answer : Liberalisation refers to the relaxation of government rules and regulations on trade and commerce.
However, it would be wrong to say that liberalisation policy have benefitted all sections in India. For example, sectors such as software and information technology have been benefitted by liberalisation.
However, sectors such as electronics, automobiles and oilseeds lose because of their inability to compete with the foreign producers. Moreover, farmers failed to get subsidies and support prices which were essential for their livelihood.
Question 8 : What is a sociologist’s view on market as a social institution ? (Delhi 2019)
Answer : Sociologists see markets as social institutions that are constructed in culturally specific ways, for example, markets are often controlled or organised by particular social groups or classes, and have specific connections to other institutions, social processes and structures.
Sociologists often express this idea by saying that economies are socially ’embedded’. This fact can easily be illustrated by the example of Weekly Market e.g. Dhorai village in Bastar district, Chattisgarh wherein the tribal and non-tribals come from nearby villages and towns to buy and sell items (food, honey, salt, baskets, tools, beads, jwellery ).
Question 9 : Explain Commodification as a feature of capitalism ?
Answer : The growth of capitalism around the world has meant the extension of markets into place and spheres of life that was previously untouched by the system. Commodification occurs when things that were earlier not traded in the market becomes commodities. Earlier, humans were considered as a commodity and were hence bought and sold as slaves.
But today labour or skills can be bought and sold and human organs have also become a commodity. Water is being sold in plastic bottles; marriages are arranged by professional marriage bureaus and the manners, etiquettes etc that were taught by family are also taught by private institutes.
Long Answer Type Questions
Question 1 : Explain the structural changes in the Indian economy as seen in the period of colonialism.
Answer : The traditional accounts of Indian economy shows that India’s economy and society were more or less unchanged. Economic transformation only begun with the arrival of colonialism by British. Ancient village communities of India were relatively self-sufficient and their economies were based on non-market exchange system. Under colonial period, the commercial money economy entered onto local agrarian economies.
The wider networks of commercial money economy brought about radical, social and economic changes in rural and urban society. But recent historical research has highlighted the extensive and sophisticated trading networks that existed in pre-colonial India. Major manufacturing units of handloom clothes and many other goods were established long before colonisation.
After colonisation, India became a source of raw material and agricultural products and a consumer of manufactured goods. Before colonisation, India was a major supplier of manufactured goods to the world market.
During this time, new groups from Europe entered into trade and business, sometimes in alliance with existing merchant communities and in some cases by forcing them out.
Question 2: Explain capitalism as a social system.
Answer : According to Karl Marx, the economy does not consist of things but is made up of people who are connected to the another through the process of production.
(i) Marx emphasised that under capitalism labour becomes a commodity because most workers sell their labour power in the market to earn a wage. This gives rise to two major classes,
- The capitalists, who own the means of production.
- Workers, who sell their labour to the capitalists.
(ii) The capitalist class pays the workers less than the value of what they actually produce and extract the surplus value from their labour and earn huge profit.
(iii) Marx believed that all economic systems are social systems. Each mode of production consists of particular relations of production which in turn give rise a specific social structure.
(iv) In Marx’s view, the dynamic of capital would eventually impoverish the working class and thereby create the social conditions for a revolution. Private ownership over the means of production and distribution is seen as creating a dependence of non-owing classes on the ruling class, and ultimately as a source of restriction of human freedom.
(v) Matxists have offered various related lines of arguments claiming that capitalism is a contradiction-laden system characterised by recurring crises that have a tendency towards increasing severity.
They have argued that this tendency of the system to unravel, combined with socialisation process that links workers in a worldwide market, create the objective conditions for revolutionary change.
Capitalism is seen as just one stage in the evolution of the economic system.
Question 3 : Read the given passage and answer the questions that follow.
When a market becomes a commodity : The Pushkar Camel Fair
“come the month of Kartika…, Thar camel drivers spruce up their ships of the desert and start the long walk to Pushkar in time for Kartik Purnima… Each year around 2,00,000 people converge here, bringing with them some 50,000 camels and cattle. The place become an extraordinary swirl of colour, sound and movement, thronged with musicians, mystics, tourists, traders, animals and devotees. It is a camelgrooming nirvana, with an incredible array of corn-rows, anklets, embroidery and pom poms.””These religious event builds in tandem with the Camel Fair in a wild, magical crescendo of incense, chanting and processions to dousing day, the last night of the fair, when thousands of devotees wash away their sins and set candles afloat on the holy water.”
What are the new circuits of goods, services, money and people that have been created at Pushkar because it is now a part of the International tourist circuit ? How do you think the coming of lare numbers of foreign and Indian tourists have changed the way in which this fair operates? Can you say that there is a market for spirituality in India with reference to this extract ?
Answer : The passage demonstrate how a market Pushkar’s typical annual cattle market and fair can transform into a type of commodity for sale in another market. People, cultural objects, and photographs, in addition to money and commodities, travel rapidly around the world, join new circuits of commerce, and build new markets as a result of globalisation. Products, facilities, and cultural aspects that were previously outside of the business structure are now drawn in. The promotion of Indian spirituality and knowledge systems (such as yoga and ayurveda) in the West is an example.
The expanding international tourism market also indicates that culture may become a commodity. A well-known annual fair in Pushkar, Rajasthan, attracts pastoralists and traders from all over the world to buy and sell camels and other livestock.
(i) As now Pushkar is a part of the International tourist circuit foreign goods, all types of facilities and foreign capital are available over here and circuits of people have also widened.
(ii) Earlier this fair was seen as a just regional fair but with the advent of other Indians and foreigners, this fair has been changed from regional fair to International fair. It has been said that one gets salvation if one takes a dip in the holy water. Lakhs of people come over here and lot of religious literature is being sold over here. That is why we can say that there is a market for spirituality in India.
Question 4 : Read the passage and answer the following questions that follow.
Sociologists view markets as social institutions that are constructed in culturally specific ways. For example, markets are often controlled or organised by particular social groups or classes, and have specific connections to other institutions, social processes and structures. Sociologists often express this idea by saying that economies are socially ’embedded’. This is illustrated by two examples, one of a weekly tribal haat, and the other the other of a ‘ traditional business community’ and its trading network in colonial India.
Sociologists view markets as social institutions that are constructed in culturally specific ways. Explain.
Answer : It is founded on the premise that the economy should be studied as a discrete part of society that follows its own set of rules, ignoring the broader social or political background in which markets work. Sociologists have attempted to develop an alternative way of studying economic institutions and processes within the larger social framework.
Twoe xamples to show that economies are socially embedded are as follows:
(a) A weekly tribal haat
(b) A traditional business community and its trading networks in colonial India.
Markets have several human qualities. They are often controlled or organised by particular social groups or classes. Besides, they also demonstrate some specific connections to other institutions, social processes and structures. Because of this fact, sociologists often say that economies are socially embedded.