Explanation: The traditional economy is characteristic of rural remote areas with a traditional value system, where there are family and sometimes tribal ties. This kind of economy is based on agriculture, hunting, fishing, mostly. Everything that is produced is mainly consumed for personal use and the monetary system is neither developed nor particularly valued.
The advantage of a traditional economy is that in the chain and hierarchy of jobs, everyone knows their place exactly, there is no need for additional qualifications, training, at least not greatly. There is no race for profit since only small amounts of surplus products are exchanged or sold, so there is no headache about uncertain investments, how sales will be realized, etc. Everyone knows what resources they need, how they will find it, and how they will distribute products among family members, groups and tribes. One important thing about an economy like this is that there is no race for profit and no increase in production except for personal needs, no increase in production capacity, expansion and advancement, and no drastic destruction of the natural environment.
The disadvantages of a traditional economy are, for example, if the year is not rainy or sunny, depending on the type of production, yields can be very low and families and tribes are at risk of food shortages. So this kind of economy depends on the weather and that's why those who are pursuing such an economy constantly fear whether the weather will be favorable for their production during the year. In addition, if there is not enough fish or animals for some reason that year, the catch will be smaller and therefore less food.
