Economic universals are three issues that all economies want to solve. Regardless of where the economy is (in North America or Asia), it has to deal with these universals.
So, I’ve been reading up on anthropology a lot lately. More specifically, economic anthropology.
I wrote an article talking about it here.
But I came across this interesting theory while reading this one article.
The theory is called economic universals. When conducting research, anthropologists have to take this concept into consideration.
What Are Economic Universals?
So what is it exactly?
Economic universals are three factors that exist in every economy. Regardless of culture, these three factors are important to all human beings.
The three universals are:
- Regulation of resources
- Production
- Exchange
Regulation of resources is exactly what it sounds like. It’s how resources, such as land and water, are used.
It’s how natural resources are controlled by the community leaders and how it is allocated to the people of the community.
Production is how resources are turned into usable commodities.
For example, converting trees into cardboard or paper.
Exchange is how completed commodities are handed out to the people of the community.
So, how a person can obtain cardboard, for instance.
Pretty straightforward right?
Economic Universals and Business
What’s fascinating about this concept to me is that all cultures practice this. These three things are important to virtually everyone.
Unlike monetary wealth, which is only important in certain cultures, economic universals are something that all societies are concerned with.
All cultures wonder how a resource can be used and how much of it should be used. They also wonder how they can produce it into something useful.
And they wonder how the finished product can be distributed.
Now that I’m thinking about it more, aren’t these some key questions of business?
You have an idea for a new product you want to make. You believe it’ll be useful for consumers.
But what are the laws that pertain to the manufacturing of this product?
Also, how can you go about making this product? And how much should you make?
And once you have inventory, how are you supposed to sell and deliver it?
I think that by learning and understanding how various cultures answer these questions, you can find a system that works for you.
And yes, you can stick to doing things the way that things have been done.
But if you were to dive in and find new ways, you may find something more efficient and effective.
You might figure out a way that fits your business and personality better than the traditional “industrial” ways.
All I’m saying is that you should be open-minded and creative.
Would you look into different culture’s economic systems to find a new way of doing business?