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 In a traditional economy people made what they needed and not that much more, because otherwise it would go to waste, and they also were very diversified. Now due to trade, people specialize in something and become very good at producing it, adn then export it at the international market and in return receive the goods they used to make as well as goods they couldn't have before
Traditional economy is shaped by tradition or economic system in which resources are allocated in inheritance, and which has a strong social network and is based on primitive methods and tools. While Capitalist Economy is an economic system based on private ownership of capital. 
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