what is traditional economy

A traditional economy is an economic system that relies on customs, history, and time-honored beliefs to shape the production and distribution of goods and services. In this type of economy, economic decisions are based on traditional values, customs, and beliefs rather than market forces or government intervention. Traditional economies are often rural and farm-based, and they typically involve bartering and trading. Examples of traditional economies include those of the Inuit and the tea plantations in South India. These economies are often associated with subsistence agriculture, where people grow crops and raise livestock for their own consumption and to trade with their neighbors. Traditional economies are one of the four main economic systems, alongside command, market, and mixed economies. They are often found in rural or remote areas where people have limited access to modern technology and markets, and they are characterized by a lack of economic growth and development, often associated with poverty and low living standards.