“Exchange” or “Barter” – It implies that instead of paying money in exchange of any good, the person exchanges a certain good in order to get hold of the product that the other person might be offering.
This is a very old method of transaction of items since ancient time. It is used since there were no currencies and people used to exchange items with others. This means that if a person had something of greater value than the other person, then the other person had to provide the person with more of the same good or if the person agrees, variety of goods until the value of the combined goods equate that which the first person has.
It is usually bilateral, but may be multilateral (i.e., mediated through barter organizations) and, in most developed countries, usually only exists parallel to monetary systems to a very limited extent.
Direct barter doesn’t require payment in money (when money is in short supply) hence will be utilized when there is little information about the credit worthiness of trade partners or there is a lack of trust.
Despite the fact that economics have considerably evolved, bartering is just as legitimate today. Considering the number of expenses you deal with, it never hurts to seek an alternate way to buy without monetary exchange. The poor cannot afford to store their small supply of wealth in money, especially in situations where money devalues quickly (hyperinflation).
One advantage to bartering is flexibility. You can trade one related product for another — such as a laptop for a portable tablet — or two completely different items — like a television for a lawn mower. Alternately, you might not even have to part with material possessions, offering maintenance, construction or other services in exchange for material goods or other assistance. Of course, there is the clear advantage of saving money. Not only do you get something you need or want, but neither party has to spend a cent.
For this system to work smoothly, it should be ensured that the values of goods are evaluated in an approximate manner so that both parties are satisfied that they are able to get hold of a good in exchange of something, which is also similar in worth. If people are willing to exchange a similar good with other person, then this does not make sense to do this until and unless the value of one good might still be different from the other. Moreover, for this system to work in a successful manner, both the parties should be willing and able to exchange the goods that they have for the goods that they want to have.
So here is the good news, you don’t have to be in ancient time to swap or barter. Luckily there is OneStopSwaps.com. It is easy. Just register here .