Well human is a social animal. There was a time when there was no concept of currency and people used to live in caves and jungles. Hunting and harvesting were two main sources of food and no other needs were looked after.
With passage of time humans started interacting with each other and community life slowly came into being.With start of community life sharing and exchange methods were also developed. The exchange of goods for goods took place for the first time and then went on. The exchange was basically based on mutual needs and understanding.
Barter system is a form of trade where good are exchanged for goods. We are in era of modern trade now and we have many modes doing business these days. Even till recent days barter trade was a common practice for Russia and China initially. Now that economies have developed so much and value of commodities can be compared on basis of currency barter trade has almost finished to exist. The recent development of plastic money and now electronic money has further left behind the barter trade and now it literally cease to exist. Barter trade served its purpose very well when there was basic need of it and basically its also the origination of modern trade.
With passage of time humans started interacting with each other and community life slowly came into being.With start of community life sharing and exchange methods were also developed. The exchange of goods for goods took place for the first time and then went on. The exchange was basically based on mutual needs and understanding.
Barter system is a form of trade where good are exchanged for goods. We are in era of modern trade now and we have many modes doing business these days. Even till recent days barter trade was a common practice for Russia and China initially. Now that economies have developed so much and value of commodities can be compared on basis of currency barter trade has almost finished to exist. The recent development of plastic money and now electronic money has further left behind the barter trade and now it literally cease to exist. Barter trade served its purpose very well when there was basic need of it and basically its also the origination of modern trade.