Barter

barter

the exchange of goods and services for other goods and services, without the use of money

Problems with barter

1. fair

2. transportation

3. perishibility of goods

4. portability (bulky, large items)

5. lack of double coincidence of wants

6. indivisibility of some goods (chairs)

Advantages of Barter

1. barter allows for a greater variety in diet

2. increases the availability of goods

3. enables the disposal of surplus production

Specialization

concentrating on only one task or concentrating on the production of a specified good or service

Division of labour

is the splitting up of a main task into several smaller tasks performed by different persons

Advantages of Specialization

1. repetion = worker will get better

2. effiency is increased

3. time is being saved

4. improved scope or using automation on mechanization

Disadvantages of Specialization

1. motivating someone who does the same task everyday is difficult

2. loss of individual craftmanship

3. disruptiion of production may occur if one person in the chain of the process is absent, ill or incompotent