Naina B. answered 12/23/14
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Hannah,
Hormones are secreted by endocrine glands and exert their regulatory effect in cell-type specific manner and in special tissues/organs as the case may be; they are transported by blood stream. Hormone secretion also occurs in response to external stimuli such as happiness, trauma, sad event etc. However, hormones also have natural cycle of secretion and regulation: such as puberty and pregnancy hormones.
Nervous system is stimulated by external physical stimuli such as extreme heat or cold exposure, injury etc. It exerts its response by neurotransmitters. For instance, when we try to take a very hot pot from burner, our nervous system senses that our hand is close to extremely hot surface and signals our hand through neurotransmitters not to touch the pot!
This illustrated the difference in their functional principle in simple manner; hope it helps.