Q:

What are the advantages of the barter system?

A:

Quick Answer

According to The Nest, the main advantage of the barter system is its flexibility, which enables the exchange of one product for another. Bartering also helps save money that may have otherwise been used to travel to a shop to buy an item. In some cases, bartering does not entail exchanging or losing the possession of an item. In such cases, service such as maintenance is exchanged for a good.

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Full Answer

Bartering refers to a form of transaction in which a person exchanges a product or service for another. A key principle of the barter system is that money is not exchanged between the trading partners. A notable difference between bartering and buying is that in the former method, a partner offers an item he does not need in exchange for a desired item. A clear advantage of this method is saving money. In addition, each party gets the item he wants without spending any money. Although it started in ancient times, bartering is used as a mode of trade even in modern times. For instance, there are many online bartering sites on which people advertise their items and list the items for which they are willing to trade their goods.

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