Weakening of Traditional Economies

Definition

This refers to how modernization or globalization can undermine traditional economies - systems based on local trade, agriculture, hunting/gathering etc., causing them to decline or collapse.

Analogy

It's like having a small family-run bakery that has been operating for generations but then a big supermarket opens nearby offering cheaper mass-produced bread. Over time, customers shift towards the supermarket causing the family bakery business to weaken.

Related terms

Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale.

Modernization Theory: A theory that outlines the path from traditional society to modern society; suggests economic development as key factor for societal change.

Subsistence Economy: An economy that produces just enough resources for the population's survival without much surplus for trade.