“Life is Barter of Choice of Consequences”

“Life is Barter of Choice of Consequences”

Need of Exchange

In ancient days, human wants were very simple and limited. Every person produced himself all the things he needed. There was no necessity of exchange for anything. People were very much dependent on nature for the satisfaction of their wants. But with the passage of time, human was increase and it became very difficult for everyone to produce everything of his need. Generally, everyone began to produce one or more particular things for which he had some advantage and knowhow. In this way, simple specialization and division of labor create the need of exchange the goods or services.

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Meaning of Barter

In the earlier age of human civilization people used to transact their business through “Barter System”. This system of trade prevailed in the economy before the invention of money.  Barter is that form of exchange in which commodities and services at exchanged with one another without any medium. For example if I get from John his pen in return for my pencil, the transaction so taking place between myself and Mahm will be termed as ‘BARTER’ , Barter _ the direct exchange of goods for goods was the first step towards monetary development.

Main points of this topic

• Form of trading
• Exchange of goods / services
• For other goods / services
• Without the use of money