How and Why a Trade Exchange Works
In This Chapter
◆ Understanding the heart of the matter
◆ Using barter credit for better trades
◆ Even a barter economy requires currency
◆ Keeping account of barter credit
A trade exchange is the driving engine of a barter economy between businesses. Anyone can do direct trade if he or she happens upon the right trading partner. But finding that partner can be very difficult.
A trade exchange provides a range of trading partners, formalizes the trades, keeps accounts of transactions, and raises the utility of barter to a practical and profitable level.
In this chapter, you’ll learn what a trade exchange does. You’ll discover that a trade exchange functions as an alternate currency, where participants ...