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Advantages of  Barter System:
The advantages of Barter System were Simplicity, More suitable in International trade, No problem of over-production and Under-production, No concentration of economic power.

• Barter system is very simple, without any complications and suitable in International trade.
• In this system the shortage of foreign exchange and imbalance in trade does not occur.
• In barter system there is no wastage which occur in monetary economy.because goods are not over produced or under produced.Only the required quantity is produced.
• The economic power is not concentrated at one particular place  in bater system because  people do not gather wealth.

Disadvantages  of  Barter System:
The disadvantages of barter system were Goods were limited, Need for Double Coincidence of wants, Difficulty of Division and Sub - division of Goods, Difficulty in calculating the value of goods, Difficulty in the case of services and Difficulty in Strong Value.

• In barter system the goods were limited. Barter system was lead only to lower level development.
• Barter system was good when needs were limited. Needs of man were increased but the supply of goods were not enough to satisfy man’s needs.
• Needs differentiate from man to man. If either parties get what they need then it is double coincidence. If not it is a trouble as they don’t get what they need.
• In the barter system it is difficult to divide and sub-divide goods.Posibility of exchange his good for only one good not for two or more.
• The value of the goods cannot be distributed equally as there were no measure during that period.
• The exchange of goods worth a service of a person was impossible as it was inconvenient to measure it. Barter sytem cannot exchange goods for services.
• Perishable goods could not saved as wealth for their future expenses. The economy could not contribute anything towards capital formation of the country too.