Children exchanging items from their lunchboxes, for example, is a common form of barter exchange, but large corporations may also barter for goods, advertising space or other commodities. Before money became widespread, bartering was the way most people exchanged the things they had for the things they needed.
Today bartering is not the most common means of exchange in any society, but it can still be a useful way of trading goods, particular when the economy is poor, there is a limited amount of money, or there is rapid inflation. Today bartering is a useful way for people with surplus or unwanted items such as too much furniture or a bumper apple crop to exchange them for items that would be more useful to them.
Bartering may be less convenient than using money — money is very liquid, whereas bartering relies on the coincidence that two individuals will have exactly what the other wants, at the same time and in the right quantity. BizXchange is a network of businesses who trade spare goods, services or manpower between themselves without the use of legal tender.
Businesses take their under-utilised capacity e. Other companies will make offers for these goods or services, and trade accordingly. Unlike a traditional barter system, BizXchange users are able to use the private currency, the BizX Dollar , as a means of exchange. Barter System is characterised by:. Though barter exchange is simple and immediate, it has certain limitations also, which are discussed hereunder:.
Mutual Coincidence of Wants : This is one of the most common problems faced by people in barter exchange. Mutual coincidence pr double coincidence of wants means that if one party wants to exchange a particular commodity with another party, then it is not necessary that the latter is also willing to exchange the commodity which the former party is looking for.
For Example : Suppose Mr Y wants a pair of shoes and he has 5 kg of wheat to offer as consideration. In that case, he has to look for such a person who wants 5 kg of wheat and has a pair of shoes to offer in return. Common Measure of Value : Lack of a common measure of value, is another major issue in barter exchange. So, in the absence of any common unit of measurement, people find it difficult to estimate the true and exact value of the commodity.
Hence, the commodity is measured in terms of the commodity only. For example , there are two parties a fruit seller and a carpenter, who want to exchange fruits against the chair. So, what they need to decide is what should be the proportion of the two commodities which are to be exchanged, i.
Basically, these are isolated transactions and in the absence of any common unit of measurement, the exchange is possible only in an arbitrary manner. This problem mainly arises when the commodity which is to be exchanged is livestock. Legal Definition of barter Entry 1 of 2. Legal Definition of barter Entry 2 of 2. Get Word of the Day daily email! Test Your Vocabulary. Test your visual vocabulary with our question challenge! A daily challenge for crossword fanatics.
Love words? Need even more definitions? Merriam-Webster's Words of the Week - Jan. Ask the Editors 'Everyday' vs. What Is 'Semantic Bleaching'? How 'literally' can mean "figuratively". Literally How to use a word that literally drives some pe Is Singular 'They' a Better Choice? The awkward case of 'his or her'.
0コメント