MEANING OF BARTER -'-
Barter means direct exchange of goods for good Barter system was prevalent at an early stage of man's economic life when the wants were very limited in number. Man could easily satisfy all his wants which he produced himself. But as time passed, his needs, began to increase. He lost his self-sufficiency He began to produce some goods in greater quantity than he could consume himself. The purpose was to exchange some of his products which he had in excess with those who had surplus products with Barter exists more in economically backward and commercially under-develop areas of the world. Why to go far off, in many of the Pakistani villages, the payment village artisan is still made in kind. Women and children in the villages get sugar, clo spices, toys, sweetmeats, etc., etc., directly in exchange for ghee, cotton seeds, whe. etc., from the village shopkeepers. In advanced countries of the world, we do not cor across the exchange of this type in their daily business. It is because the range of war and the range of commodities are so wide that it is actually impossible to satisfy the through a direct exchange of goods. In modern economy, inside the country, goods a not exchanged for goods but for money, if we want to sell anything in the market, \ quote its price in money and receive money for it. Similarly, if we need anything from tl market, we find its price expressed in terms of money.
Here a question can be asked as to how this system of barter is foui inconvenient and why it has been given up by the civilised world? The answer this question is that barter system was found inconvenient and so given up due to tl reasons given below.
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