Barter
From Supply Chain Management Encyclopedia
(/* Advantages and Disadvantages of Using Barter Arrangements Benefits Of Barter Exchange - Land Fortune Commodity Exchange - http://www.landfortune.co.zw/index.php/trading/josh.html The barter system: Pros and cons - MeriNews - http://www.merinews.) |
(/* Advantages and Disadvantages of Using Barter Arrangements Benefits Of Barter Exchange - Land Fortune Commodity Exchange - http://www.landfortune.co.zw/index.php/trading/josh.html The barter system: Pros and cons - MeriNews - http://www.merinews.) |
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'''Possible Losses of Perishible Products''' | '''Possible Losses of Perishible Products''' | ||
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- | * | + | * Some barter items cannot be saved for the long term. One of the primary functions of money is to act as a store of value. You can’t keep your fresh eggs to trade next season, or save rice for your retirement |
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Revision as of 09:05, 8 July 2014
Russian: Бартер
This word, the “barter” was perhaps the most popular in the first years of the post-communism Russian life. Under conditions of severe or even hyperinflation the domestic barter transactions were very popular if not the most popular transactions in Russia. Indeed, the most simple and, definitely, old of countertrade arrangements is barter which is often regarded as an old-fashioned means of exchange that was superseded because money is far more efficient [1]. After all, in a monetary system an apple grower who needs shoes simply has to find a cobbler. In a pure barter system the apple grower would have to find not just any cobbler but one who happened to want apples at that time. Thus in virtually all civilizations, except the Incas, money came to play an important role.
Advantages and Disadvantages of Using Barter Arrangements [2] [3][4]
ADVANTAGES | DISADVANTAGES | ||
Subject of Advantages of Using Barter Arrangements | Comments on Advantages of Using Barter Arrangements | Subject of Disadvantages of Using Barter Arrangements | Disadvantages of Using Barter Arrangements |
Barter can help business weather economic storms |
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Lack of Double Coincidence of Wants: |
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Save Cash |
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Lack of any Common Unit of Measurement of Value |
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Makes business recession proof |
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Lack of Means of Sub-division |
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Earn extra money |
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Lack of any Common Unit in terms of which Contracts and Agreements requiring Future Payments would be written |
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Reduce bad debts |
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Lack of any Common Unit in terms of which the Generalized Purchasing Power could be stored |
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Loyalty |
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Possible Losses of Perishible Products |
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References
- ↑ Barter – Relevance and Relation to Money: Is barter still relevant in the modern world? // http://projects.exeter.ac.uk/RDavies/arian/barter.html
- ↑ Benefits Of Barter Exchange - Land Fortune Commodity Exchange - http://www.landfortune.co.zw/index.php/trading/josh.html
- ↑ The barter system: Pros and cons - MeriNews - http://www.merinews.com/article/the-barter-system-pros-and-cons/15813654.shtml
- ↑ The Pros and Cons of Bartering for Survival - The Survevalist - September 04, 2013 - http://survival.outdoorlife.com/blogs/survivalist/2013/09/pros-and-cons-bartering-survival