What is the name of the exchange of goods for goods

Barter is a barter in which one commodity is exchanged for another without cash payment. Barter is considered an ineffective way of interaction between market entities, since it often takes a lot of time and effort to find a deal partner. Barter transactions are executed by an agreement in which the proportions of the exchange are fixed.

Reasons for barter

In the early stages of the development of commodity production, the exchange of goods was random and carried out without the help of money. Such an exchange was associated with certain difficulties. The requests of the participants in the transaction often did not coincide, in order to exchange one product for another, it was necessary to make a whole chain of exchange operations.

With the development of commodity relations, it became necessary to single out one product that could be used as a universal equivalent in exchange transactions. So the first money appeared, gradually barter operations were almost completely replaced by cash.

However, even in a modern market economy, the use of direct non-cash exchange of goods in some cases can be justified. The main reason barter is still popular is the insufficient liquidity of some enterprises. With the help of barter, the company can get all the necessary resources for its further development even in the absence of the necessary funds.

Types of barter

There are classic (closed) and independent (open) barter. Closed barter is a one-time one-time deal, the participants of which are two parties. In a classic barter agreement, a certain transaction volume is always fixed.

An open barter may involve several parties. Exchange can take place at different times. One of the participants in the transaction, transferring his goods, gets the opportunity to choose another product. The intentions of the participant are not declared in advance and may change over time.

In modern conditions, barter exchanges organized in the form of specialized websites can be used to search for counterparties on a trade exchange transaction. Such systems allow you to automatically search for options for the exchange of goods.