Date Posted: 12/4/2012 2:15:14 AM
Posted By: Saucer Membership Level: Gold Total Points: 4885
1. There's a need for double coincidence. There must be a match in the needs of the two different traders. This is to facilitate trade.2. Some goods may be indivisible. Certain goods could not be divided into bits for exchange purposes without them losing value.3. There is a lack of standard measure of value. It was difficult for traders to agree on for how much each item would be exchanged.4. There was difficulty in transport. Some commodities were difficult to carry around. These goods were heavy and bulky to carry.5. There was difficulty in storing goods. Certain perishable goods could not be stored for future exchange purposes because they could lose value.6. There wasn't a standard of deferred payments. Making future payments in the form of goods and services was difficult.7. Goods produced may have been of poor quality. Due to various problems encountered in barter trade, traders attempted to produce all their required commodities. This discouraged specialization. As a result, inferior goods were produced because of lack of competition.
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