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HOW DOES BARTER WORK?
In ancient times, barter involved only two parties. When one was interested in trading for a product or service, it was necessary to find someone who could supply the desired goods or services - and who also wanted what the first party had to offer in exchange. Achieving such a "coincidence of needs" was often difficult and limited the ability to trade.
With the formation of commercial barter exchanges, trading has become a much more sophisticated practice. Barter exchanges have developed computerized tracking systems consisting of debits and credits which, combined with the issuing of a "trade currency", has allowed the trade of goods and services between multiple companies and individuals. No longer does a potential trade partner require a direct relationship with the entity from which they are acquiring a needed product or service.
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