What Are Examples of Traditional Economies?
Last Updated Mar 26, 2020 10:05:41 AM ET
The bartering of hunted prey used by the Inuit tribes in northern Canada is an example of a traditional economy. So too is the economy of the Sami reindeer herders in northern Scandinavia. Both rely on traditional subsistence techniques as the driving force behind their economic activity.
A traditional economy relies on established custom to define their bartering protocols. They hunt or produce only what they can consume and what they need to trade for other necessities. There is no surplus. Societal advancement tends to be static. Traditional economies can only sustain small groups of people. Traditional economies can evolve into market or command economies.
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