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What is advantage of batter batter system disadvantage.....? |
| Answer» Advantages of Barter System:The advantages of Barter System were Simplicity, More suitable in International trade, No problem of over-production and Under-production, No concentration of economic power.\tBarter system is very simple, without any complications and suitable in International trade.\tIn this system the shortage of foreign exchange and imbalance in trade does not occur.\tIn barter system there is no wastage which occur in monetary economy.because goods are not over produced or under produced.Only the required quantity is produced.\tThe economic power is not concentrated at one particular place in bater system because people do not gather wealth.Disadvantages of Barter System:The disadvantages of barter system were Goods were limited, Need for Double Coincidence of wants, Difficulty of Division and Sub - division of Goods, Difficulty in calculating the value of goods, Difficulty in the case of services and Difficulty in Strong Value.\tIn barter system the goods were limited. Barter system was lead only to lower level development.\tBarter system was good when needs were limited. Needs of man were increased but the supply of goods were not enough to satisfy man’s needs.\tNeeds differentiate from man to man. If either parties get what they need then it is double coincidence. If not it is a trouble as they don’t get what they need.\tIn the barter system it is difficult to divide and sub-divide goods.Posibility of exchange his good for only one good not for two or more.\tThe value of the goods cannot be distributed equally as there were no measure during that period.\tThe exchange of goods worth a service of a person was impossible as it was inconvenient to measure it. Barter sytem cannot exchange goods for services.\tPerishable goods could not saved as wealth for their future expenses. The economy could not contribute anything towards capital formation of the country too. | |