How are the goods and service exchange in a Traditional economy

A traditional system is an economy based on traditions and customs passed down by generation to generation. The traditional system does not exchange money for goods and services, but instead trade goods and services for goods and services, through a process called bartering. These goods and services are made and traded for anything, for example, one female cow for two adult pigs. Some advantages of this system is that everyone knows their place in the system, and the economy can be sustained for many, many years. Some disadvantages of this system however include the fact that they discourage any innovation or progress, whether through technology, or even the economy its self. Some examples of traditional economy's today are the Eskimos who still barter and trade with each other. Another example of traditional economies are indigenous cultures. Aboriginal and Torres strait islanders are great examples of traditional economy tribes. They would trade with other tribes for food, animals and shelter. But this system started to die out when Europeans came to Australia, they forced the tribes out of their land and made it harder and harder to trade with other tribes.

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study of past cultures

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