Trade is one of the oldest economic activities that man has been doing. By definition, it is basically the exchange of goods or services for other goods or services or a consideration. In the past, people traded goods for goods or services. There were no definite mediums of exchange for them to use for their transaction so they resorted to the basic of barter trade. The qualities of world trade center prints are very many and each as vital as the other.
However, in the days of ancient times there were no definite mediums of exchange. People therefore had little choice but to exchange their particular goods or services directly for those of others. The idea was not so bad, however the reality of this practice was challenged in more than one ways. It was a very slow system that did not favor savings.
In addition to that this system of exchange also experienced problems of indivisibility, a person with a cow for instance had to find another looking for a cow and the commodities worth of the value of a cow in order to switch. This was quite cumbersome business and very many people were discouraged by the fact. The small exchange transactions were almost impossible since none was willing to break up their merchandise.
Partial exchange was also impossible with barter trade. Exchange was only possible if every party was willing to give up their entire merchandise for the offered price in terms of other good that one may never need anyway. This was due to the fact that there was no uniform unit of division of the value. Only a few commodities could be sold in smaller quantities.
Money had several advantages over barter trade. The denominations of money were easily divisible as all values were adequately catered for. The uniformity in the notes and coins also eliminated theft and imitations. It was highly durable in nature hence lasted a while in circulation. This made exchange of goods very easy and lucrative as well. Money was very easy to save for future use as compared to commodities.
As the notes catered for the higher values, the coins were given lower denominations to cater for the smaller business transactions. This solved the problem of indivisibility that was experienced during the era of barter trade. These notes and coins were also designed to be highly durable and impossible to imitate. Saving became easier with this new system of exchange.
As earlier mentioned, this practice cannot be a simple one. So much preparation must be done. The first and most crucial task is in choosing a suitable place for the practice. This place should be at least centrally located, it should be easy to access by all the stakeholders of the event. An attempt should be made to cater for all nations adequately.
This is conducted at world trade centers. An exchange center is generally a platform that allows a good number of countries to indulge in business. The organization of such an event is a very complicated fit that require so much inputs. Currency exchange opportunities should be readily available for such an event.
However, in the days of ancient times there were no definite mediums of exchange. People therefore had little choice but to exchange their particular goods or services directly for those of others. The idea was not so bad, however the reality of this practice was challenged in more than one ways. It was a very slow system that did not favor savings.
In addition to that this system of exchange also experienced problems of indivisibility, a person with a cow for instance had to find another looking for a cow and the commodities worth of the value of a cow in order to switch. This was quite cumbersome business and very many people were discouraged by the fact. The small exchange transactions were almost impossible since none was willing to break up their merchandise.
Partial exchange was also impossible with barter trade. Exchange was only possible if every party was willing to give up their entire merchandise for the offered price in terms of other good that one may never need anyway. This was due to the fact that there was no uniform unit of division of the value. Only a few commodities could be sold in smaller quantities.
Money had several advantages over barter trade. The denominations of money were easily divisible as all values were adequately catered for. The uniformity in the notes and coins also eliminated theft and imitations. It was highly durable in nature hence lasted a while in circulation. This made exchange of goods very easy and lucrative as well. Money was very easy to save for future use as compared to commodities.
As the notes catered for the higher values, the coins were given lower denominations to cater for the smaller business transactions. This solved the problem of indivisibility that was experienced during the era of barter trade. These notes and coins were also designed to be highly durable and impossible to imitate. Saving became easier with this new system of exchange.
As earlier mentioned, this practice cannot be a simple one. So much preparation must be done. The first and most crucial task is in choosing a suitable place for the practice. This place should be at least centrally located, it should be easy to access by all the stakeholders of the event. An attempt should be made to cater for all nations adequately.
This is conducted at world trade centers. An exchange center is generally a platform that allows a good number of countries to indulge in business. The organization of such an event is a very complicated fit that require so much inputs. Currency exchange opportunities should be readily available for such an event.
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