The science of economics focuses on the three major areas of production, distrib ution, and consumption as observed in the industrialized world. The subdisci pline of economic anthropology, on the other hand studies production, distribution, and consumption comparatively in all societies of the world, industrial. ized and nonindustrialized alike. The relationship be tween the formal science of economics and the sub- specialty of economic anthropology has not always been a harmonious one. Formal economics has its philosophical roots in the study of Western, industri alized economies. As a result, much of formal e nomic theory is based on assumptions derived from observing western, industrialized societies. For ex ample, economic theory is predicated on the assump tion that the value of a particular commodity will in crease as it becomes scarcer (the notion of supply and demand) or on the assumption that when exchanging goods and services, people naturally strive to maxi mize their material well-being and their profits. As we will see in this chapter, these basic assumptions are not found in all the cultures of the world Economists use their theories (based on these assumptions) to predict how people will make cer tain types of choices when producing or consuming commodities. Owners of a manufacturing plant, for example, are constantly faced with choices, Do they continue to manufacture only men's jockey shorts, or do they expand their product line to include under wear for women? Do they move some or all of their manufacturing facilities to Mexico, or do they keep them in North Carolina? Should they give their work ers more benefits? Should they spend more of their profits on advertising? Should they invest more capital on machinery or on additional labor? Western econo mists assume that all of these questions will be an swered in a rational way so as to maximize the com pany's profits. Similarly, Western economists assume that individuals as well as corporations are motivated by the desire to maximize their material well-being