A traditional economy is primarily based on agriculture, fishing, and hunting, and often relies on customs and barter systems for trade. The limiting factors of a traditional economy can include:
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Environmental Conditions: Traditional economies are heavily dependent on the environment, such as climate, soil fertility, and natural resources. Adverse conditions like droughts, floods, or changes in climate can significantly impact agricultural yields and food security.
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Technological Progress: Traditional economies often utilize simple technologies and methods passed down through generations. This lack of technological advancement can limit productivity, efficiency, and the ability to compete in a global market.
In summary, the two main limiting factors in a traditional economy are environmental conditions and technological progress.