Traditional
economies
Completed: 1st year student of RSO-121 Irina Zholobova
The traditional economy is such an economic system in which the traditions and customs shaped the practice of using limited resources. Traditional economy is the oldest from of economy.
In the traditional economy, land and capital are in common ownership, and the basic economic problems of society - what, how and for whom to produce - are solved on the basis of traditional tribal or semi-feudal hierarchical relationships between people.
Distinctive features of the traditional economy:
•primitive technology;
•predominance of manual labor;
•Members of the economic relations are combined into a strong social network;
•Key economic issues are resolved in accordance with the customs.
For the traditional economy is characterized by low-productivity farming, hunting and gathering - no regular food surpluses, and therefore no trade is permanent.
Answer the questions
What is characteristic of the traditional economy?
What are the advantages of the traditional economy.
What are the disadvantages of the traditional economy.