Damarco Robinson

Bartering is the exchange of goods and services between two or more parties without the
use of money. It is one of the oldest forms of trade and is still practised in many parts of the
world, although far less than it used to be. This system of bartering offers various benefits to
those who use it, compared to the more traditional ways of transacting goods and services.

The major advantage of bartering is that it allows those who are in need of something—but
have nothing to offer in return—to get what they need. In situations where money is not
available, bartering can be used as an alternative to buying goods and services. For
instance, if an individual has nothing to sell in exchange for food, he/she could offer his/her
skills as a solution in order to gain something of value.

Some of the other advantages are that bartering eliminates the need to pay taxes, eliminates
the need to include a third party in transactions, and it allows a person to acquire something
they need without having to pay for it. In addition, bartering provides the opportunity for two
or more parties to get to know each other better, which can lead to stronger connections and
more trust between them.

Despite its benefits, however, there are a few drawbacks associated with bartering. These
include the fact that bartering can lead to misunderstandings and disagreements if the two
parties involved do not agree on the value of an item or a service being exchanged.

Some disadvantages of bartering are the:

● Lack of double coincidence of wants

● Lack of a common measure of value

● Indivisibility of certain goods.

● Difficulty in making deferred payments.

● Difficulty in storing value.

In conclusion bartering is a method of payment that is as old as time. It is a convenient and

simple method that enables two parties to purchase their needs and wants. In order to
overcome these disadvantages of the barter system money was invented by the society.