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The basic understanding of human behavior in terms of social differences, cultural variety, biological behavior and political ideology is known as anthropology. This science has been in existence since the ancient greet philosophers. They called man as “Anthropos” meaning not an animal [“Thro” means animal and “an” is a negative prefix]. So anthropology analyzes the difference between man and the rest of organisms on this planet. The creation of economics and financial applications is one of the exclusive human activities that no other organism can indulge in. Therefore there is a very close link between economics and anthropology.
The study of this link of mutual influence is called Economic anthropology. This field frames three patterns of anthropologic behavior from the economic point of view namely, Formalism, Substantivitism and Culturalism. The formalistic approach expounds that the individuals in any society tend to take the path of least resistance in utilizing economic resources. Substantivism describes how the anthropologic influences shape the utility needs of a society as applicable to all societies while, culturalism analyzes the application of this theory to each society in specific to aid economic decisions.
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