Question

Barter – the trade of goods for goods – is booming. According to the U.S. Department of Commerce, barter accounts for 30% of the world’s total business, and experts estimate that 65% of Fortune 500 companies engage in barter to one degree or another. If a medium of exchange clearly has advantages over barter, why does barter exist today?

Answer 1

Bartering is a system of exchanging goods with another goods without involving money. It was highly popular in the olden days before monetary transaction came into practice. It is beneficial as it does not involve money and can enable the people to possess commodities even if they dont have money. Certain companies make use of barter system through auctions.

Barter is still existing today as it enable the people to possess certain commodities without the involvement of money and they can have it even if they dont have money.

It is highly popular in the case of Internet and exchange of houses. For instance, if you are going for a vacation to an outside country where your friend has a house and your friend's parents are visiting your place. You can stay at your friend's place and simultaneously your friend's parents can stay in your house. Thus the purpose is being served for both the families without the involvement of money. Thus barter is still existing today.