My holiday was smart fellow students
I made notes on barter trade in history and government.
TRADE
Definition of trade
Trade refers to the exchange of goods and services between people or countries.
Man must have started trading soon after the evolution of the homo sapien sapiens.
Trade was occasioned by the existence of varying environmental and climatic conditions. Trade
arises from the basic human needs such as satisfying food requirements
Methods of trade.
Barter trade
This is the exchange of gods for gods. It is one of the earliest forms of trade that was even
taking place during the reign of King Solomon of the Bible.
Barter trade emerged from the natural needs of the people. For example, among the Kenyan
pre-colonial communities such as the Maasai who kept livestock but did not have grains which
the neighbouring kikuyu possessed. Barter trade sometimes even took place within the same
community where some people had some special talents that others did not possess. E.g
ironsmiths
A form of barter trade known as ‘silent trade’ was practiced in some areas where the two
involved communities could not speak the same language. For example, it existed between
Morocco and Carthage in 400 BC.
Barter trade can still be witnessed in the modern society. For example, Kenya exchanges tea
and coffee with petroleum, chemicals and machinery from other countries.
Barter trade however has the following disadvantages;
It may involve bulky goods in the transaction.
There may lack double coincidence. It is difficult always to get the goods one wants.
Lack of standards of deferred payment; if a good was borrowed, it would be difficult to
decide whether the same value was returned later or not.
Some goods cannot be sub-divided into smaller units. If one wanted cloth equal to a half a
sheep, then he could not divide the sheep into two parts. Lack of store of value for some goods which cannot be stored for a long time since they are
perishable. example milk, vegetables.
Lack of measures of value; a specific quantity of goods cannot be measured vis-à-vis other
goods.
Advantages of barter system.
Poor countries without adequate foreign currencies benefit from it by being able to
exchange goods they have for what they do not have.
It benefits where money is non-existent.
It avoids wastage as demand and supply tend to equate.
It promotes interaction hence good relationship, peace and stability especially among
I hope you will learn too.
I made notes on barter trade in history and government.
TRADE
Definition of trade
Trade refers to the exchange of goods and services between people or countries.
Man must have started trading soon after the evolution of the homo sapien sapiens.
Trade was occasioned by the existence of varying environmental and climatic conditions. Trade
arises from the basic human needs such as satisfying food requirements
Methods of trade.
Barter trade
This is the exchange of gods for gods. It is one of the earliest forms of trade that was even
taking place during the reign of King Solomon of the Bible.
Barter trade emerged from the natural needs of the people. For example, among the Kenyan
pre-colonial communities such as the Maasai who kept livestock but did not have grains which
the neighbouring kikuyu possessed. Barter trade sometimes even took place within the same
community where some people had some special talents that others did not possess. E.g
ironsmiths
A form of barter trade known as ‘silent trade’ was practiced in some areas where the two
involved communities could not speak the same language. For example, it existed between
Morocco and Carthage in 400 BC.
Barter trade can still be witnessed in the modern society. For example, Kenya exchanges tea
and coffee with petroleum, chemicals and machinery from other countries.
Barter trade however has the following disadvantages;
It may involve bulky goods in the transaction.
There may lack double coincidence. It is difficult always to get the goods one wants.
Lack of standards of deferred payment; if a good was borrowed, it would be difficult to
decide whether the same value was returned later or not.
Some goods cannot be sub-divided into smaller units. If one wanted cloth equal to a half a
sheep, then he could not divide the sheep into two parts. Lack of store of value for some goods which cannot be stored for a long time since they are
perishable. example milk, vegetables.
Lack of measures of value; a specific quantity of goods cannot be measured vis-à-vis other
goods.
Advantages of barter system.
Poor countries without adequate foreign currencies benefit from it by being able to
exchange goods they have for what they do not have.
It benefits where money is non-existent.
It avoids wastage as demand and supply tend to equate.
It promotes interaction hence good relationship, peace and stability especially among
I hope you will learn too.
