History Of Money- Bartering- How To Barter Flashcards
When to barter?
A person who owns something of value could exchange it for something of equal value
Why is bartering difficult?
Bartering is difficult because what one person sees as valuable another may not
How does bartering work?
Wants and needs differ and the system of bartering depends on agreement
-the seller of mealies has to find someone who wants mealies and then the buyer must offer something in return
Advantages of the bartering system
People can trade without money
If they had excess of one good they could trade it for another
If you own something of value you can exchange if for something with the same value
Interaction between people and communities took place
Markets that their origin in the bartering system
Has bartering died out
No communities and companies still trade goods and services without money
Disadvantage of the bartering system
For bartering to happen both parties have to have what the other one wants
There is no common measure of value
Certain objects cannot be divided into smaller units
No late payments can be allowed
Storing good is difficult because they could rot or spoil
