8 LIMITATIONS OF BARTER TRADE
Lack of double coincidence of wants: - it is difficult to find two people with the need for each other’s product at the same time. Lack of store of value/ perishability of some commodities: - some goods are perishable thus their value cannot be stored for a long time for future purposes e.g. one cannot store vegetables for exchange purposes in future. Indivisibility of some commodities: -it is difficult to divide some products like livestock into smaller units to be exchanged with other commodities. Lack of standard measure of value: - It is not easy to determine how much one commodity can be exchanged for a given quantity of another commodity. Transportation problem: It is difficult to transport bulky goods especially when there is no faster means of transport. Lack of a standard deferred payment: - The exchange of goods cannot be postponed since by the time the payment is made, there could be fluctuation in value, demand for a commodity may not exist and the nature and qua...