what is barter system ?why it was failed?

Answer 1

The Barter system is an economic system in which two parties trade certain goods or services that each needs to survive.Bartering benefits companies and countries that see a mutual benefit in exchanging goods and services rather than cash, and it also enables those who are lacking "hard currency" to obtain goods and services.
An example of a barter arrangement would be if someone built a fence for a cattle farmer in exchange for food. Rather than the farmer paying the builder, say, $1,000 for the fence, he would give the builder a similar value in beef.

Dalton (1982, p. 181) warned that "...in English, we use the treacherous term barter to mean two very different kinds of transactions: moneyless market exchange (market exchange in kind), and moneyless exchange of any sort (gift-giving, prestations, ceremonial exchanges such as potlatch, Kula and moka)".Domestic barter, as practised within local and regional communities, in its most basic form, is simply the simultaneous transfer of goods and services agreed upon implicitly as being of equal worth and concluded under the one ‘contract’ (Birch and Liesch 1997). However, it need not be practised in this basic form, as centralised trading facilities have enabled unilateral (rather than direct reciprocal) trades.

Domestic barter, as practised within local and regional communities, in its most basic form, is simply the simultaneous transfer of goods and services agreed upon implicitly as being of equal worth and concluded under the one ‘contract’ (Birch and Liesch 1997). However, it need not be practised in this basic form, as centralised trading facilities have enabled unilateral (rather than direct reciprocal) trades.



There’s a reason why a barter system is a symptom of severe, sudden poverty and dramatic economic collapse preceded by runaway inflation. It’s because a barter system is inefficient and only advantageous over a monetary system when the money cannot hold its value predictably.

1) The dollar is far more stable a predictor of value, since any barter system would be new and hence difficult to predict. Nobody knows if the barter points will be honored at all, let alone honored at full value, or for how long. They very likely would not hold the force of law, and certainly wouldn’t have the Secret Service arresting counterfeiters.

2) The dollar is a far better accounting tool, since it’s easier to put dollars into the balance sheet than nebulous barter points. Businesses will be able to tell more easily with dollars

3) The dollar is far more portable, since a business can use dollars anywhere in the US, and nearly anywhere in the world, while barter points would likely only be good in certain parts of Cleveland.

4) The dollar allows for far more competition; a barter system would limit one’s options to those geographically proximate and to those in the barter system, while dollars could be used to buy supplies from anybody anywhere. This means that artifically or absurdly high prices would go unchecked or under-checked, since barterers would be partially insulated from competition.

The only real advantage, besides conservative, community-based feel-goodism, is that it’s an effective way to avoid paying sales taxes. I suspect a cash-strapped Cleveland city government would seek to remedy that shortly, if it were able.

When Russia’s ruble had that horrible plunge in 1998 people in many areas were forced to resort to the barter system, just as Germans did when the Weimar Marks became more useful as paperweights (bundled together) than money. The barter system is a sign of backwards, poverty, privation and near-total economic failure

Answer 2

Barter System

Answer 3

Barter System is a way of exchanging things for things. Nowadays we exchange things for money but in olden days, when money was not invented, people exchanged things that they do not need to others and got what they need.

Suppose one family had a dog and the other had a cow. If each would want the other, they would exchange it among them but the problem was, there was no measuring or weighing so, even a person in need of a loaf of bread could get it for an exchange of a calf.

After some time, people felt that this was not a proper system as it did not equal to the goods given and received so, they found out that there needs to be a weighing scale for this exchange where small silver coins were developed and later due to modern developements, money was made the official exchange system for goods.

BYE

Answer 4

In a barter system, people trade by the exchange of goods. In the old times, this was used and people didn't think much of it because the ability to make money to pay for things wasn't as great. Just an opinion here: If someone walked into a doctor's office, for example, today and tried to pay for the doc's services with food, they MIGHT take it as a sign of being friendly. Otherwise, they want "the green stuff", a check, or payment by insurance. They'd laugh you out of town if you tried to pay them with food.

Answer 5

What Is Barter

Answer 6

barter system is the system of exchanging goods and services for goods and services.
and it has failed because of inappropriate measurement ie it will be hard to measure how to exchange a cow for a chair.

Answer 7

BARTER SYSTEM FAILED

because they didn't now the one item and they couldn't
find the right person who wants to swap item with them

Answer 8

y barterforum. com - TEC corporate. com they'll explain what barter is... in broad terms: you scratch my back, I scratch yours with no $$$ involved.

Answer 9

It is the way It was meant to be!..Gods way or human....alien!.....as the Indians lived and mayans.............a barter system is fair..and it will have to come...........as we end our system of $$$$$$..............greed!

Answer 10

because some people they just want money rather than sharing