What are the Advantages of the Barter System?

Why is Barter System Beneficial?

There are a number of reasons that makes the barter system beneficial. Theses are-

• Simplicity- Barter System is free from the complex problems of the modern monetary system. Thus making it simpler to use. 
• No question about unemployment- With the introduction of the Batter System, the demand for goods and services were meeting the need of society and there is no question about the over-hill employment or unemployment. 
• No problem with International trade- In Batter System, the problems like the adverse balance of payments and foreign exchange crisis does exist. 
• No real concentration of power- There is no possibility of storing the commodities in a Batter System, thus there is no such problem of extreme economic power concentration. 
• No overexploitation of Natural Resources- In the batter system, the people try to manufacture or produce goods of their own for utility. They utilize personal and natural resources to the fullest extent without any greed exploitation or wastage.
• Proper division of labour- The batter System brings in the benefits of division of labour.

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