Barter Articles from FINANCIOLOGY.COM Free Article Directory

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Barter is a type of trade in which goods or services are directly exchanged for other goods and/or services, without the use of money. It can be bilateral or multilateral, and usually exists parallel to monetary systems in most developed countries, though to a very limited extent. Barter usually replaces money as the method of exchange in times of monetary crisis, when the currency is unstable and devalued by hyperinflation.

In the past, goods were exchanged on a one-to-one basis with the intent that the value of the goods traded was of relatively equal value. Prior to the establishment of currencies, barter was the most accepted form of commerce. The equality of the value in a one-on-one barter is often an issue. In 1626 Peter Minuet traded $24 worth of beads, knives and kettles for Manhattan Island – clearly Minuet got the benefit of the bargain on that transaction.

While one-to-one bartering is still practised between individuals and businesses on an informal basis, organized barter exchanges have developed to conduct third party bartering. The barter exchange operates as a broker and bank and each participating member has an account which is debited when purchases are made, and credited when sales are made. With the removal of one-to-one bartering, concerns over unequal exchanges are reduced.

Modern trade and barter has developed into a sophisticated tool to help businesses increase their efficiencies by monetizing their unused capacities and excess inventories. The worldwide organized barter exchange and trade industry has grown to an $8 billion a year industry and is used by thousands of businesses and individuals. The advent of the internet and sophisticated relational database software programs has further advanced the barter industry's growth. Organized barter has grown throughout the world to the point now where virtually every country has a formalized barter and trade network of some kind. Complex business models based on the concept of barter are today possible since the advent of Web 2.0 technologies.

Barter Subcategories

Barter Articles

5 Creative Tips for Business Owners to Obtain Financing
by Tiffany Wright
Jan 19, 2008
Capital is the crucial ingredient for any business to grow. This holds true whether you are a one-person firm with minimal revenue or a 100-person company with significant sales. Yet so many entrepreneurs and business owners complain about how diffic...

The Second Oldest Profession...Barter & Trade ...Using Discounted 2nd Mortgages To Buy Real Estate...Déjà Vu...
by Dale Rogers
Dec 08, 2006
After finishing a course in 1031 Tax Free Exchanges in the early 70’s the first deal put together on this “revolutionary” means of doing business was a “NON Qualifying 1031 Tax Free Exchange” using “pure boot”. This was not “like property”. A builder...

As The Threat of a Recession Rises MBE Offers Moguls A New Horizon
by Antoinette Padjack
Oct 31, 2006
Merchants Barter Exchange PR Account Executive Antoinette Padjack Tel: 800-822-7204 Email: pr@merchantsbarter.com www.merchantsbarter.com

Oct 31, 2006

As The Threat of a Recession Rises MBE Offers Moguls A...

MBE Will Get You Set Early For Tax Season
by Antoinette Padjack
Oct 23, 2006
Merchants Barter Exchange

Tel: 800-822-7204

Email: pr@merchantsbarter.com

www.merchantsbarter.com

Oct 24, 2006

MBE Will Get You Set Early For Tax Season

Merchants Barter Exch...

Barter Credit Repair
by Jonathan Cheong
Oct 31, 2005
Restoring Credit is Essential for surviving in today’s time. Today barter is moving back to the system as many people including business owners find it to be a solution for getting out debt or expanding their company. This might sound crazy, but ...

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