1. Barter – The Know How Rishi Anand The content is based on my knowledge & research on the subject.

3. Is the exchange of goods & services between two parties without any involvement of cash.Meaning: Barter is a medium in which goods/services are exchanged directly without a common unit of exchange (MONEY)

5. Usually replaces money as a method of exchange in times of monetary crisis or when currency is unstable.

6. No economy has only relied on barter.

7. In recent times it is more of a local phenomenon. However some global exchanges also exist.

8. Leverages the unused inventory.

10. First introduced by the tribes of Mesopotamia.

11. Initially used to trade weapons, food items, tea and spices.

12. Even Roman soldiers salary was paid in barter by offering SALT.

13. There have been proofs that purest form of barters were existing till 1874.

15. Exchange can only happen if both the parties agree to trade. No single party can complete the deal.

16. Indivisibility of commodities:

18. Wealth could not be stored, as most of the commodities were perishable in the long run and non-monetary.

19. Absence of Standard Value:

21. In modern era, even the unused inventory can be traded and products / services of value can be exchanged.

22. Reduced Cash Outlay:

24. In recent times, barter expands the horizons and also opens new markets. Org’s doing barters in a network - then bigger the bigger the network higher are the chances of new markets.

25. Increases Sales:

27. New age Barter… Modern trade and barter has developed into a sophisticated tool to help businesses increase their efficiencies by monetizing their unused capacities and excess inventories. The worldwide organized barter exchange and trade industry has grown to an $8 billion a year industry and is used by thousands of businesses and individuals. The advent of the Internet and sophisticated relational database software programs has further advanced the barter industry's growth. Organized barter has grown throughout the world to the point now where virtually every country has a formalized barter and trade network of some kind.

28. Trade Exchanges – The new concept Modern barter and trade has evolved considerably to become an effective method of increasing sales, conserving cash, moving inventory, and making use of excess production capacity for businesses around the world. There are many organisations which operate as a Trade Exchange and facilitate the barter trade. Trade Exchange is a commercial organization that provides a trading platform and bookkeeping system for its members or clients.

29. Trade Exchanges – The new concept The exchange plays an important role because they provide the record-keeping, brokering expertise and monthly statements to each member. Commercial exchanges make money by charging a commission on each transaction either all on the buy side, all on the sell side, or a combination of both. There are approximately 400 commercial and corporate barter companies serving all parts of the world.

30. Corporate Barter Corporate barter focuses on larger transactions, which is different from a traditional, retail oriented barter exchange. Corporate barter exchanges typically use media and advertising as leverage for their larger transactions. It entails the use of a currency unit called a "trade-credit". The trade-credit must be known and guaranteed (contract to eliminate ambiguity and risk)

32. Several major cities in the U.S. and Canada do not currently have a local barter exchange. There are two industry groups, the National Association of Trade Exchanges(NATE) and the International Reciprocal Trade Association(IRTA).

33. According to the IRTA, more than 400,000 businesses transacted $10 billion globally in 2008 — and officials expect trade volume to grow by 15% in 2009.

35. Around 500.000 businesses are involved in a Trade Exchange. There are approximately 600 commercial and corporate barter companies serving all parts of the world. Around 100 of the more professional Trade Exchanges organised themselves in the IRTA.

37. According to World Trade Organization report India will be the 5Th largest retail consumer market.

38. Indian market is increasingly becoming non-monetized. 10 – 20% of inter firm transactions are happening on barter…Source : WTO report

40. Larger and more diverse membership directories.

41. Higher volume of business.

42. Realization of barter as an effective distribution channel for assets, excess inventory & unused capacity.

44. As it facilitates organisations to purchase essential business needs by exchanging what they have , thus not affecting their cash out flows.

45. Liquidate Excess Stock:

46. Barter enables companies to efficiently liquidate excess stocks / capacities, which otherwise is blocked inventory or unutilized capacity for them. Companies may trade their stocks to get in return products & services they would otherwise be spending cash on.

47. Open whole new & undiscovered markets:

49. LET US BARTER