Economics Traditional Economy Questions Medium
In a traditional economy, international trade is typically limited or non-existent. This economic system is primarily based on customs, traditions, and subsistence farming or hunting, where individuals produce goods and services for their own consumption or for their immediate community. The focus is on self-sufficiency and meeting basic needs rather than engaging in trade with other nations.
Traditional economies often have limited contact with the outside world and rely on local resources and skills to sustain their communities. They tend to have a closed economic system, where goods and services are produced and consumed within the community without much interaction with external markets.
However, in some cases, traditional economies may engage in limited trade with neighboring communities or tribes. This trade is usually based on barter systems, where goods are exchanged directly without the use of money. For example, a community that specializes in fishing may trade their surplus fish with a neighboring community that specializes in farming, exchanging fish for agricultural products.
Overall, traditional economies prioritize self-sufficiency and local production, and international trade is not a significant aspect of their economic activities.