question_answer

Differentiate the sociological and economic perspective of market.

Or

How did the advent of colonialism in India produce a major upheaval in the economy?

Answer:

Difference between sociological and economic perspectives on markets.

(i) Economic approach is aimed at understanding and explaining how markets works in modern capitalist economies. While, sociological approach is based on the phenomenon of adherence of interests of society or all people to look after judicious way of an individual interest.

Adam Smith, father of economics called this phenomenon as ?invisible hand?. Thus, sociological perspective observed markets as a social institution.

(ii) Economic perspective assumes economics/economy as a separate part of society because it has its own laws to guide. However, sociologist study such economic institutions and processes within the larger social framework.

(iii) Economic perspective do study upon individual buyers and sellers and supports leissfaire. While, social perspective states that markets are controlled by particular social groups or classes. They say economics composing markets are socially embedded.

Or

The advent of colonialism in India produce a major upheaval in the economy in following ways:

(a) It created disruptions in production, trade and Agriculture. For ex.: Demise of handloom industry.

(b) Indian economy began to link to the capitalist economy of the world.

(c) India was left as three source of raw materials and agricultural products and merely consumer of imported machine made goods.

(d) Marwari communities took advantage of cities like Calcutta (Kolkata) and spread their trade and money lending business throughout the country.