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What does it mean expression of the natural economy?

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Question added by georgei assi , مدير حسابات , المجموعة السورية
Date Posted: 2014/11/01
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Natural economy refers to a type of economy in which money is not used in the transfer of resources among people. It is a system of allocating resources through direct bartering, entitlement by law, or sharing out according to traditional custom. In the more complex forms of natural economy, some goods may act as a referent for fair bartering, but generally currency plays only a small role in allocating resources. As a corollary, the majority of goods produced in a system of natural economy are not produced for the purpose of exchanging them, but for direct consumption by the producers (subsistence).

souha safir
by souha safir , إدارية , قطاع التربية

Agreed with colleagues

Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

In simple words it refers to barter system.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

A natural economy is an economic system directly opposed to financial currency, or the currency that focuses on finances, money, profit and trade. Instead of paying for items, citizens barter for resources. Some forms of this economy set items at a certain value for fair bartering, but this is not necessarily inherent to the system. Resources, such as trees and water, are harvested for direct consumption, rather than for making money. This means a natural economy is based more on what nature can produce, rather than how much has to be harvested to make a profit. A financial economy describes the economy adopted and used by most of the world. This economy focuses on using and making money, along with trading and harvesting resources for a profit. In this system, businesses use resources based on how much is needed to make a profit. All items also have a value, unlike a natural economy in which the value is based on the usefulness of the item instead of on arbitrary factors. Another term for a financial economy is "artificial economy, because this economic system is more about arbitrary values and profit instead of nature. Bartering is the mainstream form of trade in a natural economy. In some systems, bartering is not used and the group of people in the economy allocates resources based on need. Money plays no part in this economy, but some systems set a value on items based on how useful the item is thought to be. This value system is created so bartering is fair between all parties involved.Resources are needed for any economic system to survive. A financial economy is about taking resources based on profit. In a natural economy, profit is not part of the economy, so nature determines how much of the resources are harvested. This means much fewer resources are harvested.For example, a field grows at a rate of5 percent per year. A farmer in a financial economy knows he or she must harvest at least8 percent of a particular field to make an adequate profit, even though that's more than what is grown. The natural economy may only harvest5 percent of the field — to meet the economy's immediate needs. This is because the resources harvested in a natural economy are based on need, not profit.

Deleted user
by Deleted user

All sources of nature, which is not the hand of man in the existence

Bassam AL - Mujamami
by Bassam AL - Mujamami , مدير الموارد البشرية والشئون الإدارية , Bin Mariee Group

Natural economy : Refers to the type of economic systems in which no money is used for the transfer of resources between people. It is a system used to exchange goods and services through direct barter or trade.

mohammed abdel azim
by mohammed abdel azim , Tech. Clerk , CLEANCO

All previous answesr are correct

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Means the economy, which is rare or non-existent in which the use of the money, which was a prominent feature of human societies, in the early stages of economic development. It follows in the natural economy of barter system, which can use him any good or service in the purchase of any other commodity or service.

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

agree with all answers  

Mohd Asif Ansari
by Mohd Asif Ansari , HR Administrator , Al Nasseej Al Arabi Factory Co. Ltd.

Agree with the answer given by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Vinod Jetley and other professionals.

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