Barter trade

Commerce study Manual STUDY MANUAL|PDF NOTES|SYLLABUS|REVISION

This refers to exchange of goods and services for goods and services.this trade has several drawbacks.

  1. It is difficult to estimate the value of one good with another
  2. It depended on double coincidence o wants between traders.
  3. Perishability of some commodities tomatoes,fruits and milk could go bad very easily hence could not be stored.
  4. Divisibility aspect was a problem ie it wasn’t easy to divide some commodities into smaller goods.
  5. Portability-it was difficult to transport goods since some were heavy and bulky.



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