The advantages and disadvantages of a traditional economy are listed.
The customs, beliefs, and traditions of the society will affect the goods and services that are produced.The rules and laws for the distribution of goods and services will be shaped by them.It is an economy used by societies that are rural or agricultural.
There are no changes to how the economy operates.It is thought of as a primitive economic system because there is no effort at evolution or improvement.It is a repetitive cycle that provides benefits while meeting basic needs.
1.A tribe-based economy is called a traditional economy.A guide for people to complete their daily responsibilities is provided by the traditional economy.It is a place where the experience of an elder is handed down to the worker so the job can be completed based on time-honored traditions.
2.Things are simple in the economy.There are specific roles for individuals in a traditional economy.The focus is on meeting needs and people work to meet them.All resources can be put toward meeting the needs that are required for survival because there is very little trade required.Skills are passed down from one generation to the next in order for the economy to survive.
3.The natural environment works with traditional economies.Goods and services are produced based on what is available in the area.The focus of the economy is to meet basic needs through the natural environment.The economy might take water from a mountain stream instead of drilling or digging a well.
4.Community groups are important to it.The traditional economy depends on every person.Each person or group has a specific skill set that is required for the whole community to be successful, so there must be support for one another.Everyone has the same goal to survive, so there is limited competition for resources.
5.The concept of personal pride is reinforced.It is easier to take pride in one's work in traditional economies.The direct results of your labor can be seen.Although the lifestyle in this type of economy might be considered difficult, it can also be satisfying because the result of a day's work is satisfaction in knowing that life for the community will continue.
6.The same evolutionary course is followed by traditional economies.Once a traditional economy settles down, they can begin improving processes so that a greater surplus can be generated annually.The surplus can be used for bartering.When trade opportunities begin to expand, the traditional economy will form some type of currency that can be used inside and outside the economy.As the surplus expands, trade opportunities expand.
1.The people are isolated within that economy.People are not brought together by the traditional economy.Experiences in one field may not apply to experiences in another field.Different weather patterns, soil conditions, and seed availability can affect what experience is handed down by an elder or supervisor.Economic growth opportunities are limited by the fact that each traditional economy must remain local.Each family or group is working to meet their needs.
2.A traditional economy can be overwhelmed by large outside economies.Traditional economies focus on small groups, such as a family living together to produce all the goods and services they need.It can be difficult for the traditional economy to protect itself if an outside economy decides it needs resources.The process overwhelms the traditional economy and forces those who are in it to adapt.
3.It doesn't offer many choices.The traditional economy doesn't reflect what the modern world thinks of advancement opportunities.If your father is a farmer in a traditional economy, you will be expected to follow in his footsteps one day.Your children will be farmers as well.There aren't many choices within the economy structure to dream bigger.Change is strongly resisted because it threatens survival.
4.The quality of life may be lower.Modern amenities aren't always present in a traditional economy.A lack of medical care may affect the economy.Sanitation technologies may not be available.When an individual in a larger, modernized economy can receive a needed treatment and continue with their day, they may have their life threatened in the traditional economy.