Section 3.
Recognizing the main idea.
1. How was trade conducted, then, without money to pay for goods?
The answer is by bartering.
Bartering is the process by which trade takes place through the exchange of goods.
Money is not used as payment.
Instead, one good is traded for another good.
2. As trade became more common as a result of people's interdependence upon one another, it was necessary to develop or invent a more convenient method of payment.
Consequently, a new form of exchange medium, money was introduced into society.
3. Of course, the evolution from a total barter society to one that was totally monetized didn't occur overnight.
In fact, today there are still societies that are not monetized, although they account for an insignificant amount of world trade.
In the interim between a barter world and a monetized world, both systems operated together.
4. As I stated earlier, money has a specific value, but due to certain conditions, the money,
or currency as money as referred to, of some countries is more valuable than that of other countries.
5. It's difficult to give examples of barter deals because in most cases, the terms of the contract are in disclosed.
In some cases, we don't hear about barter transactions simply because they work so well.
If one company has arranged a profitable exchange, it will be very quite about it so that its competitors will not come in and try to make a better deal.
6. It's unlikely that the world will revert to a totally barter-oriented existence,
but until the economic disorder that's present in today's world is remedied, bartering will probably become increasingly important as an exchange medium.