Traditional System
A traditional economic system is based on traditions and uses bartering there is no money involved you swap goods and services. The advantages of a traditional system are, every role is defined so the people know what they have to do, so there is no confusion between the people. The system is sustainable, that means that the resources will never run out but if they do it will be over long period of time. Traditional system is sustainable because you're not relying on as much resources. There is no argument around prices because no money is involved. Everyone is equally treated and given the same amount. The negatives and disadvantages of a traditional system is there is little innovation throughout the system. There is no protection against natural disaster therefore business would drop whilst these events occur. There is limited goods and services throughout the system. Traditional systems aren't as common as they used to be but Eskimos and tribes in the Amazon still use traditional systems. The Aboriginal and Torres strait islander groups found throughout Australia use the traditional economy in their communities. They use the lands resources provided to swap are trade for another resource making them a great example of a traditional system.