To deal with problems in the economy, every country has different ways depending on the economic system which they profess. Economic system is the way a nation (public and government) regulate economic life. In other words, the economic system is a network of organizations and policies that set a state government in addressing economic problems.

1. Traditional economic system

Is the basic economic system and still use a patterned social custom of cultural values. Usually this system is adopted by the tribes in the interior and underdeveloped countries.

Characteristics, among others:

· The absence of a clear division of labor

· Lack of community’s role in trying

· Production is limited and determined as needed

· The exchange still using the barter system even though the currency has been used

· The main income of the agrarian sector » Read more: Economic System