Barter in the context of "Exchange (economics)"

Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market.

Traders generally negotiate through a medium of credit or exchange, such as money. Though some economists characterize barter (i.e. trading things without the use of money) as an early form of trade, money was invented before written history began. Consequently, any story of how money first developed is mostly based on conjecture and logical inference. Letters of credit, paper money, and non-physical money have greatly simplified and promoted trade as buying can be separated from selling, or earning. Trade between two traders is called bilateral trade, while trade involving more than two traders is called multilateral trade.

A trading post, trading station, or trading house, also known as a factory in European and colonial contexts, is an establishment or settlement where goods and services could be traded.

Typically a trading post allows people from one geographic area to exchange for goods produced in another area. Usually money is not used. The barter that occurs often includes an aspect of haggling. In some examples, local inhabitants can use a trading post to exchange what they have (such as locally-harvested furs) for goods they wish to acquire (such as manufactured trade goods imported from industrialized places).

In economics, a market is a composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labour power) to buyers in exchange for money. It can be said that a market is the process by which the value of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any tradeable item to be evaluated and priced. A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights (cf. ownership) of services and goods. Markets generally supplant gift economies and are often held in place through rules and customs, such as a booth fee, competitive pricing, and source of goods for sale (local produce or stock registration).

Markets can differ by products (goods, services) or factors (labour and capital) sold, product differentiation, place in which exchanges are carried, buyers targeted, duration, selling process, government regulation, taxes, subsidies, minimum wages, price ceilings, legality of exchange, liquidity, intensity of speculation, size, concentration, exchange asymmetry, relative prices, volatility and geographic extension. The geographic boundaries of a market may vary considerably, for example the food market in a single building, the real estate market in a local city, the consumer market in an entire country, or the economy of an international trade bloc where the same rules apply throughout. Markets can also be worldwide, see for example the global diamond trade. National economies can also be classified as developed markets or developing markets.

In economics, a medium of exchange is any item that is widely acceptable in exchange for goods and services. In modern economies, the most commonly used medium of exchange is currency. Most forms of money are categorised as mediums of exchange, including commodity money, representative money, cryptocurrency, and most commonly fiat money. Representative and fiat money most widely exist in digital form as well as physical tokens, for example coins and notes.

The origin of "mediums of exchange" in human societies is assumed by economists, such as William Stanley Jevons, to have arisen in antiquity as awareness grew of the limitations of barter. The form of the "medium of exchange" follows that of a token, which has been further refined as money. A "medium of exchange" is considered one of the functions of money. The exchange acts as an intermediary instrument as the use can be to acquire any good or service and avoids the limitations of barter; where what one wants has to be matched with what the other has to offer. However, there is little evidence of a pre-monetary society in which barter is the primary mode of exchange;instead, such societies operated largely along the principles of gift economy and debt.

An intermediary, also known as a middleman or go-between, is defined differently by context. In law or diplomacy, an intermediary is a third party who offers intermediation services between two parties. In trade or barter, an intermediary acts as a conduit for goods or services offered by a supplier to a consumer, which may include wholesalers, resellers, brokers, and various other services. "Intermediation" refers to a process matching two sides of a market, such as buyers and sellers by a third party such as a broker, agent, or wholesaler. The most common example of intermediation is in the finance industry, where it involves the matching of lenders with borrowers by a bank.

The history of money is the development over time of systems for the exchange of goods and services. Money is a means of fulfilling these functions indirectly and in general rather than directly, as with barter.

Money may take a physical form as in coins and notes, or may exist as a written or electronic account. It may have intrinsic value (commodity money), be legally exchangeable for something with intrinsic value (representative money), or have only nominal value (fiat money).

Gaelic Ireland (Irish: Éire Ghaelach) was the Gaelic political and social order, and associated culture, that existed in Ireland from the late prehistoric era until the 17th century. It comprised the whole island before Anglo-Normans conquered parts of Ireland in the 1170s. Thereafter, it comprised that part of the country not under foreign dominion at a given time (i.e. the part beyond The Pale). For most of its history, Gaelic Ireland was a "patchwork" hierarchy of territories ruled by a hierarchy of kings or chiefs, who were chosen or elected through tanistry. Warfare between these territories was common. Traditionally, a powerful ruler was acknowledged as High King of Ireland. Society was made up of clans and, like the rest of Europe, was structured hierarchically according to class. Throughout this period, the economy was mainly pastoral and money was generally not used. A Gaelic Irish style of dress, music, dance, sport and art can be identified, with Irish art later merging with Anglo-Saxon styles to create Insular art.

Gaelic Ireland was initially pagan and had an oral culture maintained by traditional Gaelic storytellers/historians, the seanchaidhthe. Writing, in the form of inscription in the ogham alphabet, began in the protohistoric period, perhaps as early as the 1st century. The conversion to Christianity, beginning in the 5th century, accompanied the introduction of literature. In the Middle Ages, Irish mythology and Brehon law were recorded by Irish monks, albeit partly Christianized. Gaelic Irish monasteries were important centres of learning. Irish missionaries and scholars were influential in western Europe and helped to spread Christianity to much of Britain and parts of mainland Europe.