{"id":23447,"date":"2022-01-25T10:42:17","date_gmt":"2022-01-25T05:12:17","guid":{"rendered":"https:\/\/infinitylearn.com\/surge\/?p=23447"},"modified":"2022-02-08T18:04:59","modified_gmt":"2022-02-08T12:34:59","slug":"the-market-as-a-social-institution-cbse-notes-for-class-12-sociology","status":"publish","type":"post","link":"https:\/\/infinitylearn.com\/surge\/cbse\/cbse-notes\/sociology\/the-market-as-a-social-institution-cbse-notes-for-class-12-sociology\/","title":{"rendered":"The Market as a Social Institution \u2013 CBSE Notes for Class 12 Sociology"},"content":{"rendered":"

The Market as a Social Institution \u2013 CBSE Notes for Class 12 Sociology<\/strong><\/span><\/h2>\n

\u2022 Market is a place of interaction between the buyers and sellers, producers and consumers in respect to goods and services.
\nSocial Aspect of Market<\/strong>
\n\u2022 Interchange and interaction among people.
\n\u2022 It is a place where there is exchange of information and building of relationship.
\nEconomic Perspective<\/strong>
\n\u2022 Distribution, production, consumption of goods and services, as well as investments.
\nAdam Smith<\/strong>
\n1. Self-interest<\/strong>
\n\u2014 Every individual is interested\/works for his own self-interest.
\n\u2014 When every individual thinks in this way, it contributes to the profit and growth of the country.
\n2. Invisible Hand<\/strong>
\n\u2014 The government hand is less, we have more hand (role over the economy)
\n\u2014 The individuals decide the supply and demand economy.
\n\u2014 Laissez Faire leave us alone let it be\u2019 the government should not interfere in the private sector.
\nSociological Perspective<\/strong>
\n\u2022 Social and cultural aspect of the market (a lot of social activity takes place in the market).
\n\u2022 It is controlled by social groups, caste and class.
\nMarket<\/strong>
\n(1) Weekly Market (2) Traditional Communities
\ne.g. Dhorai village in Bastar district, Chhattisgarh, the tribal and non-tribals come from nearby villages and towns to buy and sell items (food, honey, salt, baskets, tools, beads, jewellery)
\n\u2014 Besides buyers and sellers, there are entertainers (performers, magicians, games, rides etc.).
\n\u2014 Moneylenders also come.
\n\u2014 This kind of market is typical of villages, cities and towns.
\n\u2014 In tribal and hilly areas, weekly market is a huge occasion for them to interact with their friends and kins (Social meeting place).
\n\u2014 There is economic as well as social interaction.
\nChanges in the tribal market<\/strong>
\n\u2022 In the colonial period many developments took place.
\n\u2022 Forests were cleared for laying down of roads, railways and industries.
\n\u2022 They were displaced and were not given alternative homes, their occupation had to change.
\n\u2022 Non-tribals (dzlws)-moneylenders and traders exploited them.
\n\u2022 The local economy integrated regional market integrated national market.
\n\u2022 The British took tribal products and sold them in cities.
\n\u2022 Tribals were isolated and hence exploited.
\nSeating arrangement in the weekly arrangement<\/strong>
\n\u2022 Given by anthropologist Alfred Gell the centre portion is occupied by the non-tribals.
\n\u2022 Rich dikus selling semi precious stones to tribals but non-middle class, Second level- middles class, Periphery tribals and lower castes.
\nEven the interaction between tribals and non-tribals traders are different:<\/strong>
\n\u2022 Tribals and non tribals purely business their position in society is different so they have nothing in common except the market.
\nExchange of items<\/strong>
\n\u2022 Tribals are not only sellers but buyers as well.
\n\u2022 Common items are not available on every day basis.
\n\u2022 They wait for the weekly market to buy goods.
\nCaste Based markets<\/strong>
\n Precolonial Period<\/strong>
\n1. Market system was quite well developed.
\n2. Non-market exchange money is not directly involved and barter system (exchange of goods) was in practice.
\nJajmani system<\/strong>
\n\u2022 A very solid system based on heredity.
\nJajmans-landlords.
\nPrajans-service class (goldsmith, barber, tailors).
\n\u2022 Jajmans paid them in kind or cash.
\n\u2022 The son of Prajans would serve the son of the Jajman.
\n\u2022 Bartar system was well developed and efficient and slow.
\n\u2022 Pre colonial spices, cotton (handloom), jute (exported to other countries)
\n\u2022 India had its own manufacturing units, very good trading networks and an extensive banking system (very different from own banking system today)
\nColonial period<\/strong>
\n\u2022 Nakarattars (now called chettiars) from Tamil Nadu provide an interesting illustration of how these indigenous trading networks were organised and worked in colonial period.
\n\u2022 Hundi-Credit note which is given to a person from a reliable source (of three communities)
\n1. Trust within the kins
\n2. Strengthen their community, the person is given money, starts their business and repays the money
\n3. Caste to become well known
\n\u2022 Nakarattars also went to Sri Lanka and the North-East countries.
\n\"market-social-institution-cbse-notes-class-12-sociology-1\"
\nSocial Organisation of market Traditional Business communities<\/strong>
\n\u2022 Vaishyas were the merchants, traders and the businessmen.
\n\u2022 When the British came, industries were set up and it led to \u2018industrialisation\u2019
\n\u2022 The British didn\u2019t allow Indians to be the heads of the industries, but they let the merchants help them.
\n\u2022 After independence, the merchants took over since they were trained by the British (For example, Parsis, Bohras, Jains, Sindhis)
\n\u2022 The Marwaris in North areas, could be very rich or middle class or local traders.
\n\u2022 Everything is a business, they live very meagrely and put the rest into the business.
\n\u2022 Birlas, Bajaj, Dalmia
\n\u2022 Different communities monopolize business like salt, since they wanted only their community to prosper and to be known for a particular ownership e.g. there was more trust involved and it was heredity e.g. screwala (business of screws)
\nColonialism and the Emergence of New Markets<\/strong>
\n1. Jute, Cotton, silk and spices were available before the colonial period.
\n\u2014 British took cotton from India, sent it to Manchester where the finished product was sent back to India.
\n\u2014 People began buying this cloth since it was cheaper and so the handloom industry in India collapsed.
\n\u2014 The machines were more productive than the manual labour.
\n2. India was only a manufacturer earlier, but later it became a supplier of raw material.
\n\u2014 Also they became consumers since goods came from Britain too.
\n\u2014 During colonialisation, the Marwaris utilized the opportunities to train themselves and after independence they took our livelihood since they knew the tricks and trade.
\n\u2014 During colonial rule, they acted as bankers for the Britishers with finances.
\n\u2014 Even today they own various business since it is hereditary (father to son).
\nUnderstanding Capitalism as a social system<\/strong>
\n\u2022 Given by Karl Marx \u2018the haves\u2019 i.e. the industrialists, businessmen and the \u201chavenots\u2019 i.e. the labourers, workers formed the social system in market.
\n\u2022 He was against a capitalistic society, the \u201chaves\u2019 have everything in society.
\n\u2022 It is the \u201chavenots\u2019 who work for the \u201chaves\u2019 and are paid wages.
\n\u2022 He felt that the labourers were commodities (could pay for them).
\n\u2022 Market is not only the exchange of services which is important, but because of the inter-relationship among the people which is more important.
\n\u2022 According to Karl Marx, the labourers are not paid as much as they should be paid.
\n\u2022 There is a simple value (Profit) which is the extra value in terms of the wages paid to the labourers in proportion to the work.
\nCommodification<\/strong>
\n\u2022 Any item which did not have monetary value before and is being sold e.g. organs, water, finishing school, wedding planner, agents.
\nGlobalisation<\/strong>
\n\u2022 Interlinking local economy with global economy.
\n\u2022 Local \u2014\u00bb regional \u2014\u00bb National -\u00bb global.
\n\u2022 Been existing since pre-colonial times but it was very limited (trade with very few countries).
\n\u2022 Now the amount of trade has increased to other countries and making it a global village.
\n\u2022 Started in 1980\u2019s but in 1991, India began interlinking economically with the global market through the policy of liberalisation (eco aspect of globalisation).
\n\u2022 Globalisation comes from all aspects (economic, social, Political, cultural, ecological, technological).
\n\u2022 Liberalisation is when trade barriers, tariff (tax or imports) were reduced.
\n\u2022 Movement of capital, people, services.
\n\u2022 Privatisation of PSU\u2019s
\n1. Call centres-Providing services to different companies all over the world due to cheap labour and infrastructure is available (India).
\n2. BPO-Business Process Outsourcing.
\n3. Outsourcing.
\n\u2022 When you outsource your work to another company where infrastructure, labourer is available for being a support system.
\n\u2022 Other aspects of a company drat are important (security, aesthetic, housekeeping) to reduce the problem of formation of trade unions and avoid headaches.
\n\u2013 Production, distribution, sales, marketing of various products.
\n\u2013 Beneficial for both, company gets work done and the people become well known
\nand then attain jobs from other greater companies.
\n\u2022 Nasdaq is the stock exchange in Wall Street, New York
\n\u2022 Virtual market
\n\u2022 You can buy\/sell stocks using the internet.
\n\u2022 No use of paper currency.
\n\u2022 Also called electronic economy.
\n\u2022 Satyam was the first Indian company to register with Nasdaq.
\n\u2022 New, York, London, Tokyo are the financial capitals.
\n\u2022 Pushkar Fair is the biggest casual market in India.
\n\u2022 Buffalo, cow, cattle are sold and bought near Ajmer, Rajasthan.
\n\u2022 Pushkar lake-auspicious and considered sacred, during the Karthik Purnima month of the Hindu calendar; a dip in the lake for washing away of heads and fulfilment of wishes.
\n\u2022 Many international tourists visit the place.
\n\u2022 Has a symbolic value (exchange and intermingling of culture around the world).
\nLiberalisation (Marketisation in free market)<\/strong>
\n\u2022 Reduction of trade barriers, tariffs.
\n\u2022 Movement of people, capital, services from one place to another (technology, goods).
\n\u2022 Economic aspect of globalisation.
\n\u2022 Privatisation of the PSU\u2019s (Laissez Faire).
\n\u2022 Marketisation shows low produces and consumers (derived and supply) control the market forces.
\n\u2022 Markets are controlling the social, economic and political problems of the country.
\n\u2022 Making it more globalised.
\n\u2022 The member of disadvantages are more than the advantages but globalisation is here to stay for the development of the country.
\n\u2022 More efficiency, more competition helps to reach maximum potential and improve quality.
\n\u2022 Some industries get benefit from this (fruits, automobiles).
\n\u2022 Support price and subsidies should not be given.
\nDisadvantages of Liberalisation<\/strong>
\n1. There are some sectors which have (IT, seafood, fruits) increased in exports.
\nElectronic goods and automobiles have come down since foreign goods are of better quality.
\n2. In rural areas one family faces a lot of competition from the foreign families.
\n-\u00bb Variety of fruits, support price, subsidies
\nAdvantages of liberalisation<\/strong>
\n1. Commodities which were not available to us earlier are available now.
\n2. Privatisation-better efficiency and quality, due to competition.
\n3. Foreign investment and foreign exchange coming into the country, therefore, there is prosperity, growth-and development.
\n4. Increased employment for skilled labourers.
\n\u2022 Support Price: The government gives to the families at a certain price which is much less than the normal price.
\n\u2022 Subsidies: When the government reduces the price and gives it to people at a low price e.g. Kerosene oil, rice, water, electricity.
\n-> The deficit or difference in the price is paid by the government.
\nIn rural society, support price means the government fixes a particular rate by which they buy the products from the farmers e.g. if 1 kg wheat is for Rs. 40 and it goes up to Rs.70, the government will still buy it for Rs. 40.
\n\u2014> Liberalisation says subsidies and support price should not be given by the government. Especially hybrid seeds, fertilizers and insecticides.
\nWhy?
\n\u2014> Unemployment has gone up for the unskilled labourers, increases in the unorganized sector in India 70% are in the unorganized sector.<\/p>\n

Words That Matter:<\/strong>
\n1. Capital:<\/strong> An accumulated fund of invertible resources capital such as to grow, to add to itself this in the process of accumulation.
\n2. Capitalism:<\/strong> A system of commodity production, or production for the market, through the use of wage labour.
\n3. Class:<\/strong> An economic grouping based on common or similar position in the social relation of production, levels of income and wealth, lifestyle and political preferences.
\n4. Commodification:<\/strong> The transformation of a non-commodity (i.e., something that is not bought and sold for money in a market) into a commodity.
\n5. Commodity:<\/strong> A good or service that may be bought or sold in the market.
\n6. Commodity fetishism:<\/strong> A condition under which social relation become expressed as relations being things.
\n7. Consumption:<\/strong> Final use of goods and services by people who have purchased them (consumers).
\n8. Economic anthropology:<\/strong> A subfield of socio-cultural anthropology that studies the entire range of economics and cultures found in the prehistoric, historic and ethnographic records, especially non-market economic systems.
\n9. Globalisation:<\/strong> A complex process of economic, social, technological, cultural and political changes that have increased the interdependence, integration and interaction among people and economic actors (companies) in desperate locations.
\n10. Jajmani System:<\/strong> Non-market exchange of produce, goods and services within the (North) Indian village without the use of money, based on the caste system and customary practices.
\n11. Labour power:<\/strong> Capacity for labour; the mental and physical capabilities of human beings that are used in the process of production. (As different from labour, which is work performed).
\n12. Laissez Faire:<\/strong> An economic philosophy that advocates free market system and minimal government intervention in economic matters.
\n13. Liberalisation:<\/strong> The process whereby state controls over economic activity are relaxed
\nand left to the market forces to decide the general process of making laws more liberal or permissive.
\n14. Marketisation:<\/strong> The use of market based solution to solve social, political or economic problems.
\n15. Market:<\/strong> A situation where through the medium of money transactions of buying and selling of things are decided between the buyers and sellers.
\n16. Stock Market:<\/strong> A market for stocks or shares in companies. It is the place or mechanism for buying and selling of such shares.
\n17. Surplus values:<\/strong> Increase in the value of investment or return of capital.
\n18. Virtual market:<\/strong> A market that exists electronically and conducts transactions via computers Telecommunication media. It is also known as paperless market.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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