Barter trade is the medium in which goods or services are directly exchanged for other goods or services without a common unit of exchange (or without the use of money).

A person with a gift or talent of making coats out of the animal skins, was able to communicate his gift (skin coats) into the lives of those that needed his coats.

Through the mechanism of finding something that he himself needed from the people who wants his coats, he was able to exchange his animal skin coats, and in return they gave him what they could offer.

For example: if someone had a chicken that lays eggs, he could take a number of eggs, and exchange them with the skin coat that he needed.

(The number of eggs was always the value-number that was given according to the negotiated terms discussed by the coat owner and the person that posses the eggs).

Through trading in this way, people began to relate more to each other, respect, honor each other’s strength, and also be able to minister and solve each other’s needs.

What happened to barter trading after the invention of money?

This article was taken from www.ngabo.org/written by Ap-Ngabo

	Continuation: What happened to barter trade after the invention of money?.