Traditional Economy

The traditional economy is an original economic system in which traditions, customs, and beliefs help shape the goods and the services the economy producers, as well as the rules and manner of their distribution. A traditional economy is defined by bartering and trading. If any excess goods are made, they are typically given to a ruling authority.

The traditional economies are popularly conceived of as undeveloped economic systems, having tools or techniques seen as outdated. The view that traditional economies are backward is not shared by scholars in economics. The traditional economies may be based on tradition and custom with economic decisions family, community, etc.

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