Topic Content:
- Meaning of Trade by Barter
- Problems of Barter Trade
Before the introduction of money, there was a method of trade, known as trade by barter.
Trade by barter is a system of trade whereby goods are exchanged for goods without the use of money as a medium of exchange.
Problems of Barter Trade:
This was used during the primitive era and it had a lot of problems, including;
(i) Double Coincidence of Wants: It is not enough for a trader to have goods to offer, the trader must also look for somebody who has what he or she wants and be ready to collect what the other person has to offer. That is, the wants of the two partners must coincide. This is the greatest setback of barter.
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