- A traditional ecomony relies on habit, custom or ritual to decide questions of production and consumption of goods and services. They're made up of communities that tend to stay relatively small and close.
- There is little room for innovation or change.
- Work tends to be divided among gender lines; girls follow their mothers and boys most likely take the occupation of their fathers.
- In traditional economies, it's hard to adapt new technology or new ideas.
- There are few mechanisms to deal with environmental disaster, and there may not be access to everyday goods.
- They are lacking in modern conveniences and have a low standard of living.
- Traditional economies are often found in rural regions.
- The people of the society decide what to produce, how much to produce, how it should be produced, and who should get te product.
Advantages of a Traditional ecomony
- Everyone has their own role to play and is aware of what it is.
- The decisions of who to produce to are determined by customs and traditions of society.
- There is a strong social network based on methods and tools
Disadvantages of a Traditional ecomony
- New ideas and ways of doing things are discouraged.
- Strict rules have the effect of punishing people who act different or break the rules. This leads to lack of progress and economic stagnation.
Examples of Traditional economies
- Inuit of Northern Canada - Lived in villages and were a close knit community, there was relatively little trading of goods amongst villagers because everyone shared what was made.
- Quiche Maya of Quatamala - Agriculture was the main basis, and they created techniques of spinning, dyeing, and weaving cotton.
- African Mbuti - The Mbuti live within the rainforest so their contact with other cultures is limited. They have a lifestyle that revolves...