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After adopting the barter system, it was determined that a simpler form of exchange was required, leading to the choice of a single good that could be freely exchanged for any other good with the consent of the parties.
What is a barter system?
In trade, barter (derived from baretor) is an exchange system in which parties engage in direct exchanges of one commodity or service for another without the use of a medium of exchange like money.
Tribes from Mesopotamia are most likely where the bartering system began circa 6000 BC. The Phoenicians observed the procedure and incorporated it into their culture. These prehistoric humans traded goods for the food, tools, and spices they required.
The lack of foreign currency and the imbalance in the trade do not exist under this system. Waste that happens in a monetary economy does not happen in a barter system. since neither an excess nor a shortage of products exists.
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