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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* In an exchange, members get to know each other either by working with each other or by reputation being in a small group. Trust is developed and members refer each other to cash consumers outside the group | * In an exchange, members get to know each other either by working with each other or by reputation being in a small group. Trust is developed and members refer each other to cash consumers outside the group | ||
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- | + | '''Great difference in times of delivery for items involved in exchange.''' | |
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- | * | + | * Involving into exchange the items with enormous difference in volumes necessary to be changed. The party with an expensive item has a risk to be not compendsated due to drastic changes in the marketing environment of the country with a cheap item to be exchanged for multiple deliveries; e.g., expensive equipment and timber or ore. |
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Revision as of 09:16, 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old of countertrade arrangements is barter which is often regarded as an old-fashioned means of exchange that was superseded because money is far more efficient [1].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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New business |
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Great difference in times of delivery for items involved in exchange. |
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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