In Canada, barter continues to thrive. The largest b2b barter exchange is Tradebank, founded in 1987. P2P bartering has seen a renaissance in major Canadian cities through Bunz - built as a network of Facebook groups that went on to become a stand-alone bartering based app in January 2016. Within the first year, Bunz accumulated over 75,000 users in over 200 cities worldwide.
Trade is the negotiation and exchange of goods and services for money or for desired goods and services that are possessed by another. Trade, on the other hand, is a broader term which includes barter system, purchase of goods using money, international trade between countries, commodities trading, currency trading, stocks and bonds trading, etc. When the world developed, the concept of currency and money as a medium of exchange trade between parties became a simple exercise as a fixed and fair price was determined for each product or service. Nowadays trade is conducted in many platforms including international trade which is the trade of goods and services among countries through the payment of international currencies such as the USD, GBP, JPY, etc. However, this involves exchange rate risk which can be quite costly. Trading also occurs on share markets wh ere investors buy and sell securities. Commodities traders and currency traders also trade commodities and currencies with the aim of making profits.
The barter system is a type of trade that involves the exchange of goods and services without the use of money as a medium of exchange. Trade, on the other hand, is a broader concept that includes not just the barter system, but also, international trade, commodities trading, currency trading, etc. The main difference between barter and trade is that while barter trade does not involve money, other forms of trade occur with currency used as a medium of exchange. An important point to note is that the invention of trade whether barter or otherwise has developed a useful system under which individuals, businesses and nations can exchange or sell off the products or goods held in excess and purchase or obtain desired products, goods and services. The invention of currency has greatly simplified this process making trade convenient and fair.
The Owenite socialists in Britain and the United States in the 1830s were the first to attempt to organize barter exchanges. Owenism developed a "theory of equitable exchange" as a critique of the exploitative wage relationship between capitalist and labourer, by which all profit accrued to the capitalist. To counteract the uneven playing field between employers and employed, they proposed "schemes of labour notes based on labour time, thus institutionalizing Owen's demand that human labour, not money, be made the standard of value." This alternate currency eliminated price variability between markets, as well as the role of merchants who bought low and sold high. The system arose in a period where paper currency was an innovation. Paper currency was an IOU circulated by a bank (a promise to pay, not a payment in itself). Both merchants and an unstable paper currency created difficulties for direct producers.
There might come a time in your business's life when you want to barter your services. In fact, you may find it prudent from time to time to trade your services for the services that another business offers. It helps to have a plan in place for this and to have some safeguards against overextending your services beyond what you can support. After all, if you barter all of your services all of the time, then you'll never earn an income.
An alternate currency, denominated in labour time, would prevent profit taking by middlemen; all goods exchanged would be priced only in terms of the amount of labour that went into them as expressed in the maxim 'Cost the limit of price'. It became the basis of exchanges in London, and in America, where the idea was implemented at the New Harmony communal settlement by Josiah Warren in 1826, and in his Cincinnati 'Time store' in 1827. Warren ideas were adopted by other Owenites and currency reformers, even though the labour exchanges were relatively short lived.
Anthropologists have argued, in contrast, "that when something resembling barter does occur in stateless societies it is almost always between strangers." Barter occurred between strangers, not fellow villagers, and hence cannot be used to naturalistically explain the origin of money without the state. Since most people engaged in trade knew each other, exchange was fostered through the extension of credit. Marcel Mauss, author of 'The Gift', argued that the first economic contracts were to not act in one's economic self-interest, and that before money, exchange was fostered through the processes of reciprocity and redistribution, not barter. Everyday exchange relations in such societies are characterized by generalized reciprocity, or a non-calculative familial "communism" where each takes according to their needs, and gives as they have.
I wish I came up with this fantastic idea. SharedEarth is a free site that connects landowners with gardeners and farmers in need of space to grow crops (i.e. starting a home vegetable garden). You can find free access to land in exchange for sharing a little bit of produce with the landowner. In a time of a strong and growing local food movement and concerns about food safety, SharedEarth might just be the most important sharing site of all!