Traditional Culture Encyclopedia - Traditional festivals - Title What do you think is the basis for physical exchange
Title What do you think is the basis for physical exchange
The basis of physical exchange is to exchange things that are needed by each other, replacing the function of money with physical objects.
Before financial money was invented, human ancestors exchanged goods with barter to get the items they wanted. There is no more bartering in a modern market economy.
The basis for bartering is that the commodity value of the two items is equal, and only then are the two parties willing to exchange, or else there is economic friction.
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