It can named as ‘business' between 2 or more party without involved money.It sound weird because it is difficult to imagine how the transaction occur without involving money.But that is the fact.At that time because money is not existed yet anyone who want have anything can exchange their product with other people whereas people who have any kind of service can exchange with people who have service as well.
The weaknesses of this kind of activity is when the type of product they want to change is not same.For instance A have a cow and B have a goat .They agree to exchange their product .The question is are the exchange valuable?As we know the size of cow is bigger than the goat.If the exchange happen A will exactly loss because he got thing which is smallest than B which is got cow more bigger than goat.
This the dilema that they facing when they want exchange product with other people.Barter system happen because people ay that time do not know how do business.This is because maybe people at that time think what they got is just for their self and family.
Practically,the barter system will create unsatisfaction to the people who want exchange their product with other people.Unjustify happen because the product or service they want to exchange do not have the same value.However because of lack of knowledge therefore they will not bother all that kind of thing because they think all of that is not important as long as they can survive in continuing their life.
For the solution of the problem,the party involve must have same type of product or same value or almost have same value.If not it is difficult to implement the exchange activity.
Beside that, other problem that will exist is the person who want or asked to exchange the produt have fixed the type of product or service they want to be exchange.If the product is not available therefore the exchange can’t be implemented.This thing really make other party disappointed because the exchange fail to be done.This problem can be solved but it take time to get the desire product.Imagine if we still practicing this sytem.
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