What are the different types of traditional economies?

Traditional economy usually carries a classic definition of insufficiently developed system, which uses primitive tools for collecting and spreading goods. There are three categories of this type of economy, including community, market and command. The fourth often creates a mix between these types of traditional economies. For example, the mixed economy has elements of market and command of the economy or parts of the community and market economy. Numerous factors affect how the nation builds its economy and creates a system for the movement of resources on the market.

Community economy is not too far from the traditional economy. Members of the community have few ways to transfer goods between individuals in the local region. In many cases, people use rituals or customs to decide to grow and change in the economy. Examples of community economies come from Indian tribes, natives and Amazon nations that live in a primitive environment. This system works well and little progress does not mean any major changes in the economy and how individuals withaccumulate or use goods.

market economies are the next step in the outline of the traditional economy. These markets rely on the freedom of individuals to choose from the collection and use of economic resources. Individuals without customs and rituals take the decisions that are most beneficial. As there will be an increasing way, more individuals benefit from the market, unlike the basic traditional economy. For example, an individual decides to start a business and create good; The sale of low -cost goods to others can only benefit from one individual's business events.

command economies begin when the government begins to manage the actions of the economy. This usually begins when the traditional economy has a government that will act as a supervisor. Individuals in the rule, say guidelines on how individuals should use resources. Most command economies try to achieve naturalBalances where all individuals have the same goods and a fair lifestyle compared to others. The order or strongly controlled economies usually have stricter rules than the traditional economy.

The mixed economy occurs when the government plays a major role in the market economy, ie when the government is trying to regulate the market economy. This is the type that most often grows from the traditional economy. This development can provide the best of both worlds in terms of national economy. At other times, the government simply wants to control the movement and use of goods in a market economy for tax revenue purposes.