What is it? A Traditional economy produces what the community needs to survive by making what their ancestors made. They make the goods for the community or to be bartered ( the exchange of goods without the use of money) for other goods. Customs and beliefs shape the production of goods and services and answer the TBEQs Advantages Strong sense of community Strong focus on family and everybody is treated equally Wealth of community is shared equally amongst all Natural resources are used in a sustainable manner
Disadvantages Very little innovation and growth They don't have systems in place to protect them from natural disasters
Examples of a traditional economy Areas of Africa, Asia and parts of South America are examples of traditional economies