What are the Advantages of the Barter System?

By meenakshi|Updated : July 22nd, 2022

The advantages of the Barter System are that the system is simple, there is no problem with international trade, and there is no question of under-production. Along with this, the natural resources are not overexploited, and the rich cannot store the commodities for increasing their economic power. Also, there is the proper division of labour.

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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FAQs on advantages of the Barter System

  • The problems like the adverse balance of payments and foreign exchange don’t persist in the Barter System in International trade. 

  • The Batter System deals with the usage of personal as well as natural resources to the fullest without much wastage to meet the increasing demand for goods and services.

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