Barter ERA

Barter is a system of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.

Stages in Exchange Development

1st Stage- Direct Appropriation Stage What early mans needs was provided by its natural resources.

Stages in Exchange Development

3rd Stage- The Use of Commodity as Money Some goods because of its usefulness, beauty, scarcity and rarity commands a wide acceptance as medium of exchange. Non-Metallic (rice, corn, wheat, salt, tea, cattle) Metallic Money (gold, silver, copper. Intrinsic value or material value is equal its monetary value

Commodities Used as Money Throughout History Money that could be Eaten In Mexico and Central
America CORN was used as money, In Japan and the Phils. RICE was used

Money for buying a Wife

In South Sea Islands 10,000 coconuts were enough to buy a wife In the days of the Early Roman Empire, SALT were used as money. salarium

Salt Money

Commodities Used as Money Throughout History Living Money

In Egypt SLAVES was used as money, In England they were called payment in Kind

In China

Tea was used as Money

In Greece

Cattle was used as money

Stages in Exchange Development

DIFFICUTIES OF BARTER:
1. 2. 3. 4. Product do not have the same value No double coincidence of wants Lack of store value It is cumbersome, inconvenient and indivisible