Trade by Barter
A long long time ago when a person like you and I wanted to have something they would exchange it for something else.
Trade by barter is when you give something you own to someone that wants it, so they can give you something you want in return. Have you ever traded with your brother, sister, cousin or friend? Maybe you wanted their chocolate and they wanted your sweet and so you swapped…
Bukky loves Amina’s jeans and Amina really likes Bukky’s book, so they swap and both of them are happy! Can you think of something you want? What would you exchange for it?
Sometimes trading can be tricky. What if Bukky wants Amina’s jeans but Amina doesn’t want anything that Bukky has? No trade can happen if both people don’t want something.
Ajapa wants some of Aja’s yams. What should Ajapa give Aja for the yams? Ajapa offers to give Aja one mango, for five yams. Is that a fair trade? Perhaps if Ajapa offered Aja more mangoes, Aja would be more interested in trading with him.
Sometimes trade by barter can be difficult because it’s hard to decide how valuable something is. Bukky may think her book is worth ten jeans, because she loves her book. But Amina only thinks the book is worth one pair of jeans.
Today, some people still practice trade by barter but we prefer to use money to get the things we want.