Amadeo 1 Traditional Economy: Definition, Examples, Pros, Cons 

A traditional economy is defined by three characteristics:

• Based on agriculture, fishing, hunting, gathering.
• Guided by traditions.
• They barter instead of money.

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• Traditional economy appear to be living in proverty.
• Traditional economies operate in emerging markets, or the Third World countries.

• Pockets of traditional economies can be found throughout the world.

• Basic level, a traditional economy exists in a hunter.
• Families or tribes cover wide areas ot find food to support them.

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• Nomadic hunter usually compete with other groups for scarce natural resources.
• All consume and produce pretty much the same things.
• Groups don't compete with each other.

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• Nomadic societies and those where the land is owned by the community.
• Socialist if they distribute production according to the level of each individuals contribution.

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• Traditional Economy Advantages
• The distribution of resources is usually well known.
•  Traditional economies are usually less destructive to the environment.

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• Traditional Economy Disadvantages
• Traditional economies are very vulnerable to changes in nature weather.
• Traditional economies limit  population growth.

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• Tradition Economy Examples
• Traditional Economies prevailed in the U.S. before the immigration of Europeans in 1492.

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• Economies rely on custom and tradition.
• Traditional economies are usually less destructive to the environment, and are therefore sustainable.
• Sibera has damaged streams and the tundra, reducing traditional fishing and reindeer heding.

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• Strong network of traditions and culture that were largely devastated by the War.
• Two thirds of Haiti's population relies on subsistence farming for their live hood.