ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The barter system is characteristic of traditional economies. It marks the evolution of the market economy-historically, every country developed out of some form of the traditional economy. Contemporarily though, most traditional countries have transformed into mixed economies.

Detailed explanation-2: -Bartering is based on a simple concept: Two individuals negotiate to determine the relative value of their goods and services and offer them to one another in an even exchange. It is the oldest form of commerce, dating back to a time before hard currency even existed.

Detailed explanation-3: -In ancient times, trade began as a barter system in which people exchanged one object for another. Prehistoric humans traded animal skins or services for food. Over time, coins and currencies began to emerge. Some primitive societies used shells or pearls as currency.

Detailed explanation-4: -Mesopotamia tribes were likely the starting point of the bartering system back in 6000 BC. Phoenicians saw the process, and they adopted it in their society. These ancient people utilized the bartering system to get the food, weapons, and spices they needed.