Barter System Meaning
Barter system refers to an alternative system of trading in which goods as well as services are exchanged directly for one another without the primary use of money as form of an intermediate means. It refers to an old method of exchanges.
What is Barter System? Definition, Examples, Benefits, Limits
Barter System: Barter is the trade of goods or services between two or more people that does not include the use of money or a monetary device such as a credit card. Trading is defined as one party providing one good or service in exchange for another party providing a different good or service. A simple example of a barter relationship is a carpenter who builds a fence for a farmer. Instead of paying the builder $1,000 in cash for labor and supplies, the farmer may reimburse the carpenter with $1,000 worth of produce or groceries.
Table of Content
- What is Barter System?
- Barter System Meaning
- Concepts involved in Barter
- Types of Barter
- Benefits of Barter
- How do entities barter?
- Drawbacks of Barter System