Question

write three disadvantages of barter system

Answer 1

Disadvantages of barter system are: •Tedious and time consuming.  •The people with different kind of needs must be there to satisfy each other needs.  •there are many products which  cannot be devided.  •valluation of goods is very difficult.

Answer 2

Three disadvantages of the barter system are limited trade, standardization and uneven transactions

• Without the use of money, commodities and services are exchanged for one another under the barter system of trade. The disadvantages are -

Limited Trade

1. Barter needs a double coincidence of wants, which means that both parties must have something the other wants.
2. Achieving this can be challenging, especially in complicated transactions involving numerous commodities.

Lack of Standardization

1. As there is no established unit of measurement for commodities in this system, it can be challenging to compare the relative worth of various items.
2. Conflicts and disputes over the worth of the commodities being traded may result from this.

Uneven Transactions

1. The system restricts the range of trade because it frequently only allows for individual or small-scale transactions.
2. This can limit the possibility of economic growth and development and make it challenging for enterprises to function on a broad scale.
3. Moreover, barter is not well-suited for international trade, as it entails overcoming linguistic and cultural boundaries and might be vulnerable to logistical issues such as shipping and storage.

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