Advantages of Barter System

Barter is a Simple Product Exchange System, the Mool-mantra of this concept is to wipe-out the liquidity crisis that we currently face by helping you 'Trade, Swap, Replace ANYTHING". Your posts on this website would be absolutely free and even you strike a deal on your own. we don't want a penny out of it.

Money is something which is generally accepted as a medium of exchange. It is one of the most basic and significant inventions of mankind. Before money came into use, exchange took place through barter system, i.e., goods were exchanged for goods.

Barter means direct exchange of goods. In other words, barter refers to Swap Products of goods without the use of money. For example, corn may be exchanged for cloth, house for horses, bananas for oranges and so on.

What are the advantages of Barter System?

• It is a simple system devoid of the complex problems of the modern monetary system.
• There is no question of over or under-production (or of unemployment or over-hill employment) under the barter system since goods are produced just to meet the needs of the society.
• The problems of international trade, such as, foreign exchange crisis, adverse balance of payments, do not exist under barter system.
• There is no problem of concentration of economic power into the hands of a few rich persons under the barter system because there is no possibility of storing the commodities.
• Personal and natural resources are ideally utilised to meet the needs of the society without involving any wastage.
• The barter system also reaps the benefits of division of labour because it represents a great step forward from a state of self- sufficiency hi which every man has to be a jack of all trades and master of none.

Barter window : Exchange : Trade : Swap: Replace Anything with Everything Else
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