Traditional Economy

There are no pure traditional economy in the World now. India is not a traditional economy. Many economies continue with traditional small scale/ cottage/ village industries limited by local markets as well as traditional small scale fragmented land farming, but most economies have modern industries and transport, growing urbanization. None of the countries can be strictly referred to as traditional economies. And, many of the countries are exporting and importing through cross border trade. Many are capitalist economies, often mixed economies. Some are relatively closed economies with communist or religious dictatorships.

If you mean which countries have small scale traditional industries coexisting with modern industries, then most undeveloped and developing countries fall in this category. They include, beside India, Pakistan, Sri Lanka, Bangladesh, Nepal. Vietnam, Indonesia,. Myanmar, , Mauritius, several poor African countries.

A traditional economy is an economic system in which resources are allocated by inheritance, and which has a strong social network and is based on primitive methods and tools. It is strongly connected to subsistence farming. Most countries that have historically had a traditional economy have replaced it with a command economy, market economy, or mixed economy. However, it is still found today in underdeveloped, agricultural parts of South America, Asia, and Africa. A traditional economy is where people produce most of what they need to survive. Hunting and gathering, farming, and herding cattle are the bases of traditional economy. People hunt for the food they eat or raise it themselves. Often they make their own clothing and tools. If they produce more food than they need, they trade the surplus, or extra food, for goods made by others.

Ask your Social Studies teacher.

Traditional economies lead to less economic prosperity than capitalist and planned economies because of the efficiency of industrial production. As a result, people are voting with their feet and wallets to leave traditional economies and embrace capitalism or some other form of industrial economy.

Ethiopia, Tanzania, Ireland, South America, Many places in Africa, Middle East, Mexico, New Zealand and Finland to name a few.

because they didn't now the value of one item and they couldn't find the right person who wants to swap items with them

False

1. Full employment

2. Price stability

3. Satisfactory rate of economic growth

4. Free trade with other nations

5. Correct distribution of income

6. Efficient allocation of resources

7. Economic freedom, efficiency, equity and security.

The development of money has solved many problems with barter,because when we talk about money we think about coins and notes which is easier to store and circulate,money is now acting as the medium of exchange.

Bartering is a very old system of exchange. For example, if a person wanted to buy a hog from a farmer, they might trade him 40 bushels of corn. It is a system that works without actual money.

Yes because if I give you the materials to fix something, you would do it for free!

If by the barter system, you mean the system of trading goods and services that existed prior to the introduction of money, the barter system is almost completely replaced when money is introduced. An easier flow of goods and Specialization are the immediate changes to the economy that come with the introduction of money.

Money tends to be very durable, very portable, and easily divisible.

Most goods are not all three, and often have only one of these characteristics.

Divisibility of Milk vs Portability of Plow

Money reduces barriers to trade. For example, if a blacksmith has a hankering for a gallon of milk, and the farmer wants a new plow, there is a mismatch of value, the blacksmith only wants a gallon of milk, the plow will take a lot of time to make, require a lot of metal and fuel for the forge -- not to mention the wear and tear on his equipment, he'd need 100 gallons for that trade, but he only wants one. This mismatch in value is common in the barter system, and slow down the marketplace.

Durability of Money to Save vs Milk Grain and Nails

Money also makes it easier for savers to pool their investments in new business types which previously couldn't work in the barter model. Imagine several farmers and the blacksmith save cash up over ten years, and buy a bunch of specialized wagons that can carry a lot of goods from farm or factory to market, they then get the return on this investment as they further specialize the economy creating the job of teamster (later unionized :) ) these owners pay the teamster to maintain the wagons and horses and carry goods back and forth, this gives the farmer and the merchant more time to do what they have specialized in.

Benefits of specialization

So money pushes participants in the economy to specialize, merchants who buy raw food goods from different suppliers sell them at market for money, farmers, and milkers get cash for raw goods and a new occupation is born, the goods merchant. Now people have a place to come for goods, a store, which seeks ever new products to sell. As the farmer has more time (he now sells his milk product all at once when he arrives at the market) he has more time to work his farm, he discovers new ways to yield more goods with the same property, maybe he starts to raise fish in his pond, or he starts writing books.

Money is often easier to steal than goods, and services. This creates new category of occupation, highwayman and banker. People don't want to have their savings vulnerable to theft, so they need a safe place to store it, a vault in a bank is perfect. But this means people who are moving money around need to have carts to deliver the money to the bank, this creates the job of highwayman, and pirate, which creates the need for private security contractors and royal navies. and so on. Once you have bankers you can finance ever more complicated industries that could never be built out of the wealth of one person, although they may start smaller that way-- think airlines, aircraft manufacturers, and automobile makers -- without access to credit from banks they could not afford the capital outlays required to build modern aircraft and cars.

Money makes the world go round, the world go round, the world go round!

Silent Barter is a process in which people exchange goods without ever contacting each other directly. This method was used to make sure traders did business peacefully.

Our class reenacted a silent barter scene.

There are a few things that illustrate the traditional economic system. These include Amazon tribes, Aborigines, and a multitude of substainance groups.

For OW its "label reading Made in China"

A traditional economy is based on an established economy that has proven successful in the past. Resources are allocated by inheritance. There is no waste of resources and roles are well defined. A huge disadvantage, however, is a resistance to change.

The city of Rome became the centre of the thriving and extensive trading network of the Roman Empire. Goods were transported from all over the massive empire and were sold in the four corners of the empire. Trade reach beyond the empire. There was trade with Ethiopia, Arabia, Persia, India and China. The city of Rome imported goods on a massive scale.

The city of Rome was a massive importer of corn (half of it from Egypt, the rest from Tunisia, Sicily and Sardinia) which was needed to feed its large urban population. It also imported large quantities of olive oil (the largest supplier was Spain, followed by Turkey and Syria). It also imported expensive cloth, silk (from China) and linen and cotton (from Egypt) for the rich. Spices, herbs, sesame oil, sugar, limes, peaches, ebony, pearls and wild animals (tigers, rhinos, elephants, and snakes which were used for circus-type animal acts) were imported from India. Egypt, besides corn and textiles, exported papyrus, ivory, gemstones, ebony, ostrich feathers, leopard skins, lions, leopards and elephants. Incense, perfumes and spices were imported from Arabia. Timber, wool, wine, glass and horses were imported from the Middle East. Spain also exported silver, wine, timber, and horses. France exported glass, wine, and wool. Britain exported silver and wool. There was also a trade in marble, granite, porphyry and other stones for buildings.

Rome and Italy exported amphorae, manufactures, cameos and other jewellery, works of art, some marbles, wool and wine.

India and it's caste system.

You are born into a certain realm of career choices and a distinct class and lifestyle. Traditional economies exist also (at the most fundemental level) in rural areas dependant upon subsistence farming and the community. Examples of this would be rural Brazil, if your father was a farmer, you are a farmer, if your father raised cattle, you raise cattle. On the other hand, if your father was "mayor" (or the equivalent), hey, you're mayor.

arriba el pais de alberto es el mejor del planeta que viva el rico peru

It allows for a standard cost pricing to be established on goods and services and the regulation of that pricing. since you got money you could pay your taxes, if you paid your taxes you wouldn't have to serve in the army. you could also buy and sell property

Our economy does not allow a lot of economic growth. Therefore we usually stay the same and don't really expand at all. Another down fall is that our products are not as efficient as they would be if they were to be produced in a factory or by any machinery. Also there is really no opportunity for entrepreneurs so that lowers the quality of peoples lives

In a command economy the government decides how many of which goods are produced. But in a traditional economy the social roles and culture determine how goods and services are produced. Babies are produced by anal sex

For a variety of reasons, money was almost always in short supply during the early colonial period. The lack of coins and currency forced the colonists to barter. The English leaders felt that colonial exports, such as animal skins, dried fish, and tobacco, should be paid for in English goods. Colonial exports would be accepted in return for an equal value of such goods as fabrics, window panes, pewter dishes, and mirrors. This barter arrangement - an exchange of goods or services without using money - seemed ideal to the British but was increasingly unpopular with the colonists, who preferred coin for their exports to gain more independence over their buying power.

Honoring Tradition