A traditional economy is an economic system that is based on customs, history, and time-honored beliefs. In a traditional economy, traditions, customs, and beliefs help shape the goods and services the economy produces, as well as the rule and manner of their distribution. Here are some key characteristics of a traditional economy:
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Production: In a traditional economy, production is aimed at self-sustenance, and people consume whatever they produce. The economy is typically centered around agriculture, fishing, and hunting.
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Trade: In a traditional economy, trade is minimal, and goods are typically exchanged through bartering and trading.
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Customs and traditions: Customs and traditions dictate methods of goods production and distribution. Economic decisions are based on customs or beliefs of the community, family, clan, or tribe.
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Social support: The traditional economy is fundamentally based on social support and community-oriented activities.
Examples of countries that use a traditional economy include Brazil, Alaska, Canada, Yemen, Haiti, and Greenland. Traditional economies are often rural and farm-based, and they are popularly conceived of as "primitive" or "undeveloped" economic systems, having tools or techniques seen as outdated. However, the view that traditional economies are backward is not shared by scholars in economics and anthropology.
Some advantages of a traditional economy include:
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Sustainability: Traditional economies are often sustainable and can be maintained for long periods of time.
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Community-oriented: Traditional economies are community-oriented and promote social support.
Some disadvantages of a traditional economy include:
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Technologically backward: Traditional economies rely heavily on old-school production and miss out on new techniques that can increase production, leisure time, and cost-efficiency.
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Seasonal changes: Disruptions due to seasonal changes can leave no food for the participants, leading to starvation.
In conclusion, a traditional economy is an economic system based on customs, history, and time-honored beliefs, where production is aimed at self-sustenance, and trade is minimal[[4]](https://www.c...
