NAME: DHAVAL ASHAR

CLASS: TYBCOM
SEMESTER: Ⅴ
DIVISION: A
ROLL NUMBER: A/ 005
SUBJECT: EXPORT MARKETING
SUBJECT TEACHER: SAMRAT SRIVASTAVA
DATE OF SUBMISSION: 20TH AUG. 2021

BARTER

INTRODUCTION:

A barter system is known as an old method of exchange. This system has been practised for
centuries and long before money was introduced. People started exchanging services and
goods for other services and goods in return. Today, bartering has made a considerable
comeback using more sophisticated techniques to aid in trading, for instance, the Internet. In
ancient times, this involved system people in the same area; however, today bartering is
global. The value of bartering items is negotiable with the other party
.
Bartering is usually conducted directly between two parties; however, it may be done
multilaterally through a trade exchange. Developed countries typically don’t engage in
barters unless they’re done in association with the standard monetary system of your country,
and even then, it is only practised in rare instances.

In times of monetary crisis, a barter system is often established as a means to maintain

the trading of goods and services as well as to hold a country functioning. This may occur if
physical money is not available or if a country sees hyperinflation or a deflationary spiral.

MOTIVATION:

There are numerous benefits of adopting a Barter Trade Strategy. Let us look at certain
factors - relevant to the modern economy - that makes bartering a viable option for any
business.

 1.     Increased Profitability – Bartering allows acquiring the required products and services
at a very low marginal cost. This improves the overall profitability of a business.

2.    Bartering through a trade exchange is helping in diversifying the customer base.

3.     Bartering helps businesses to overcome challenges of an economic slowdown. This is

because a Barter Exchange continuously helps you to expand the customer base.

4.     Trading for services and equipment that are needed to increase a company’s efficiency
is improving the overall operating efficiency of a business.
5.     Barter trade allows companies to promote motivation among their workforce through the
use of perks, bonuses, and rewards for employees.

6.     Replacing cash purchases with trade credits is helping Barter members to use their
working capital more productively.

7.     Adopting a barter trade strategy allows businesses an opportunity to develop new

products and services as barter sales mean more cash-flow.

. 8.   Barter sales improve a business’s market share.

INNOVATION:

Today, increasing trade and financial integration between countries with globalization leads
to intense competition and global economic crises in national and international markets. Due
to these developments, the companies have some difficulties carrying on their business with
traditional marketing and financing techniques and use alternative methods. One of them is
barter system, which is based on the principle of buying and selling goods and services
without using money. Barter is innovated form of exchange system, which has been used as a
trading method since the early ages; today, it is also used as a counter-trade type. Barter
offers companies various benefits such as moving overstock, utilizing idle capacity,
increasing sales, finding new markets, supplying interest-free credit, conserving cash, debt
configuration, foreign trade facilitation. The aim of this study is to examine the benefits of
bartering in terms of commercial and financial dimensions. As a result of the study, it has
been determined that barter is an innovative alternative to traditional mentality based on
interest, and It is a type of trade and finance that will contribute to the country's economy by
relaxing companies even in times of crisis. Nevertheless, it has been determined that barter
instrument is not well recognized in Turkey, barter industry is not institutionalized, national
and international barter transactions has not become widespread enough. Legal regulations
are needed for effective, safe and widespread application of barter. 

SUMMARY:

Items that are used as money often have little value in and of themselves. For example, the
paper used to print money is not particularly valuable. Money has value because it is an
exchange medium that people understand and accept as such. When everyone accepts that a
bill or a coin has value, people can use it as a form of payment to purchase goods or services.
Before money existed, people used other systems to perform exchanges.

Bartering involves a direct trade for goods and services. Although some aspects of this
transaction are similar to the exchange of money, bartering required time as people
hammered out the terms of the deal. Utilizing money as the medium for trade simplified
transactions significantly. Trade and barter were precursors to the monetary system used in
today's society. Although trade and barter may seem almost archaic, they were the business
solutions for people who lived before the convenience of credit card processing.

Bartering is the process of trading services or goods between two parties without using
money in the transaction. When people barter, everyone benefits because they receive items
or services they need or want. Bartering also has an advantage because even people without
money can get something they need. Bartering might involve trading a service for an item.
For example, you could agree to perform yard work for someone in exchange for a bushel of
apples from a tree in their yard. When people choose to barter to meet a need, they can save
their money for other needs.

PROJECT DETAILS: