Explaination of Barter, Trade, Commerce & Business

Topics: Trade, Economics, Commerce Pages: 3 (1007 words) Published: June 17, 2014
Explaination of Barter, Trade, Commerce & Business
Barter : The act of trading goods and services between two or more parties without the use of money. Bartering benefits individuals, companies and countries that see a mutual benefit in exchanging goods and services rather than cash, and it enables those who are lacking hard currency to obtain goods and services. This term implies that instead of people money in exchange of any good, the person exchanges a certain good in order to get hold of the product that the other person might be offering. Before the introduction of currencies, there used to be only the system that allowed people to make transactions with each other. Before there was money, there was barter. In barter, people exchange goods and service directly in exchange of goods and service offered by others. An individual possessing a material object of value, such as an animal, a measure of grain or farmed produce, could exchange that object for another object perceived to have equivalent value. In ancient history, all forms of goods were used in barter. Items include amber, beads, eggs, chicken, corn, rice, hoes, ivory, leather, pigs and even oxen. However, barter was a rather troublesome form of trade and ineffective way to exchange goods and services. The capacity to carry out ideal transactions is severely hampered and restricted since it is dependent on a coincidence of “wants” from both parties. The person who has a chicken to barter for some beads may not find a person with the beads who is looking for a chicken. Trade : Trade, also called goods exchange economy, is to transfer the ownership of goods from one person or entity to another by getting a product or service in exchange from the buyer The act or process of buying, selling, or exchanging commodities, at either wholesale or retail, within a country or between countries. Trade also mean purchase or sale. it appare in economics as business deal or transaction . The buying and selling of...
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