Saturday, June 4, 2011

Traditional Economy Countries

The traditional economy countries are those that are said to accept the changes very easily and they mainly depend on agriculture. In other places, they are referred to as the subsistence markets and in order to understand these markets well, there are few things to look at. In many economies there are three things that determine how they perform. There are common economies where the prices of goods and services are determined by the government. In this particular type, there are certain systems that determine the price and among them are the belief systems as well as the customs. For this reason, it may remain unchanged for a long time and when the changes begin, they are very gradual.

One of the things to note is that there are still countries that still practice this and they follow them. They are not developed countries but they have been able to make the system to work for them for a long time. Many of these counties are those that are in the third world level and they are looking to advance to be among the developing countries. One thing to note about these markets is that the wealth is not in the hands of a few people and even if there are other currency forms of trading that are used include the barter trade. What happens is that the people produce what is enough to keep the families going and there is very little surplus that is left. All the others that are left go into business use that is to the businesses or to the government.

One of the things that they mainly rely on is agriculture as it is the backbone of all the activities that they do. Little by little, the places that do this are trying out other new things that they think may be able to work out for them and help them to advance to other levels and try out other different things as they think is convenient for them.

In order to understand this particular market fully, there are several things that need to be explained. With all the different definitions that are there, a person may be able to understand even more how it operates and the different things that it does so that it can be able to sustain itself. There are many places where they started with this before they advanced to become other form of markets.

It is now rare to find places where they still practice this because changes happen so fast and in many places they are doing everything to try and keep up. With this, the changes are taking places and more people are ready to accept new things. A look at traditional economy countries helps a person to understand where many other markets have come from and be able to rate their progress. It also helps a person to understand other forms of markets that are there and how they differ with this one in particular.

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