Trade and Exchange

      The people of Oceania rely on the sea and the land. The land is where they build homes and villages, where their lives are centered and food is produced.

      A village's economics are based on three types of transaction: living, reputation and females and children. The operation of these three types of transaction is again divided into three levels of exchange, namely mutual benefit, redistribution and marketing.

      Trading can be conducted on land or at sea. Kula Ring of the Trobriand Island is a well-known example.

      The Kula Ring is located around the southeastern islands and islets of New Guinea. The peoples in this area use a diversity of raw materials and create a variety of handicrafts. They use large canoes as vehicles to carry out trade of goods among the islands.

      The connections among the islands have become an extensive network for trade. What are mainly traded are items of no economic value such as armbands or necklaces made from shells. They constantly circulate the items, one by one, within the Kula Ring.

      The activity of Kula appears to be a kind of seasonal ceremony on the surface, but in reality it promotes the economy of the Kula Ring. A person brings what he has to trade for what he needs, such as coconuts, fish, baskets, blankets and stones as well as other handicrafts, when he goes to another island.

      The activity of Kula is not only a reciprocal exchange but also promotes the local economy and redistributes natural resources.