What Does Barter Payment Mean?

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What Does Barter Payment Mean?
What Does Barter Payment Mean?

Video: What Does Barter Payment Mean?

Video: What Does Barter Payment Mean?
Video: 💲 Money vs. Barter | Characteristics of Money 2024, December
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The word "barter" is experiencing, one might say, a rebirth. Even a market economy cannot block commodity-money relations the way to the return of an older form of payment - payment in goods for goods.

What does barter payment mean?
What does barter payment mean?

If we turn to history, then in the depths of centuries barter was the most widespread and appeared long before the emergence of money. At a time when they lived by subsistence farming and crafts, the exchange of values could only take place in this way. Barter has always been unequal, and how much of which product could be exchanged for another good was determined by everyone for himself. Bargained until they agreed on the price.

With the advent of money, the process of selling goods was facilitated to some extent, since a certain equivalent of value appeared, through which relations between "entrepreneurs" were regulated.

What is barter scientifically?

If earlier the meaning of the word "barter" could be explained by a simple process of exchange of two owners of their goods, now the concept of "barter" has acquired a deeper meaning. With the development of the economy and various types of legislative acts, this term has received the following explanation:

"Barter" is a form of civil law contract in which two (or more) parties participate. The first of the parties undertakes to transfer goods or other property to the second party, in payment for which the second party undertakes to transfer other goods in an amount that will be equal in value to the goods transferred by the first party. In this case, like many centuries ago, the cost of the first and second goods is a subjective thing and is determined by the parties who have reached an agreement.

What can be barter?

It should also be noted that barter in the modern sense can be carried out not only in the form of payment of two firms for each other's services, but also in the form of payment to employees for labor, or when purchasing any goods. In general, this form of payment in the modern economy takes place in different forms, but at the same time, the processes of reporting to the tax authorities are complicated. Another form of barter is a "barter" agreement.

In addition to the difficulties with reporting to the Federal Tax Service, there are other difficulties. So, in barter, the possibility of an equivalent exchange can be only if goods are tied to their monetary value, otherwise it is very difficult to judge the equivalence of barter.

Barter exchanges have been simplified thanks to the emergence of exchanges, which have their own base of barter offers expressed in large volumes of goods. On these exchanges, you can find a lot of acceptable options for doing business through barter.

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