Dear Muhammad

In my experience as economist the term barter tradings & bartertTransactions I have not seen it differentiated, and always related to the same concept of commercial exchange that I detail.

Barter is the exchange of goods and services for other goods and services without the use of money or cash equivalents to complete the transaction. To access a barter, two parties must accept a contract called a swap.

Barter is one of the most remote exchange activities of mankind, because barter appeared during the Neolithic.

During the last 30 years, in domestic markets I have proof of its use in extreme situations of lack of liquidity. Besides, it has been used in the field of international trade because it allows import and export without using money, not deteriorating the trade balance of a country. Generally, it has been used in positions of imbalance between the parties, because it is very likely that the exchange will greatly favor one of the two parties at a monetary level, given that the barter is carried out by a need, often of an urgent nature.

It also allows establishing more equitable commercial relationships between companies in other sectors and developing commercial channels without changing the client portfolio.

However, bartering has the disadvantages. First, it is not always easy, or possible, to find someone who wants the product or service we offer for the exchange. There is also the problem of ambiguity regarding the monetary value of the goods or services that are exchanged, which makes the decision to establish commercial relationships difficult, even though the parties are based on the market price.

Hope this helps.

PM

I agree with Pedro that the terms are sometime used interchangeably.

Barter typically requires a double coincidence of wants. This can create inefficiencies that might be more obvious with an example.

Suppose I want a work of art that someone created. I offer my men's wrist watch for the work of art; however, the artist has little if any interest in my watch. Instead, I have to find something she wants (i.e., actually, something she wants more than she want to retain her work of art). If I want the work of art, then I must try to find something she wants and trade my watch or something else for it. This might enable me to trade with the artist because we have a double coincidence of wants. A double coincidence of wants was required in the trade for the item I ultimately traded. It is so much more efficient to use a medium of exchange such as money.

I hope this helps.

Rob

Dear Dr. Sanjeet Singh,

Thanks for sharing useful link. Thanks also to spare your precious time for valuable answer.

Thanks & Regards

Dear Dr. Pedro Maria Martinez Villar,

Thanks for sharing detailed information. Thanks also to spare your precious time for valuable answer.

Thanks & Regards

Dear Dr. Rob Catlett,

Thanks for sharing detailed information. Thanks also to spare your precious time for valuable answer.

Thanks & Regards