Economics Traditional Economy Questions Medium
In a traditional economy, trade plays a crucial role in the exchange of goods and services between different communities or tribes. It allows for the acquisition of resources that may not be available within a particular community, thereby promoting economic growth and development. Trade in a traditional economy is often based on barter system, where goods are exchanged directly without the use of money. This exchange of goods helps in meeting the diverse needs and wants of individuals and communities, as well as fostering social and cultural interactions. Additionally, trade in a traditional economy also facilitates the spread of knowledge, ideas, and technologies, contributing to the overall progress of the society.