a) Barter trade
These exchanges could take the form of silent trade or dumb barter. In some areas a form of `silent’ barter trade was practiced between communities who could not communicate in the same language.
It’s suitable where there is no currency, thus eliminating challenges associated with currency such as foreign exchange rates, inflation, demand and supply
b) Currency trade
It’s the use of money to purchase commodities or to pay for services. Currency is a medium of exchange accepted by a community as a measure of value for goods and services, items used as currencies as in pre–colonial Africa were gold dust, cloth, copper rods, iron and cowries shells.
Important characteristics of currency
Advantages of currency trade
The value of the currency may fluctuate depending on the strength of a county’s economy.
International recognized currencies includes
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Related Questions on Trade
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