Traditional Economy is the economy based on Agriculture, Fishing or hunting . It follows the previous traditions. It may also use barter instead of money. Because of these characteristics traditional economy is found living in poverty and operated in emerging markets. These economies can be found in Africa, Asia, Middle East and Latin America. As the traditional economy centers a family or tribe it follows the traditions of their elders. Elements of Capitalism, Socialism and communism can be found in the setup of the traditional economy. (news, n.d.)
Advantages
As traditional Economy follows traditions and customs so the allocation of resources are well known. Individual roles are clear in production and it is also very less destructive to nature. It is found to be very sustainable.
