Problems of Barter Trade

1. The problem of storage: Some goods easily got rotten (perishable) e.g. tomatoes

2. The double coincidence of wants: the problem of finding out someone who really needed your products and if you also needed his/her commodity

3. Indivisibility of goods: Some goods cannot be easily divided and thus made barter trade very difficult

4. Trade on credit was impossible

5. No common standard of value: For one to be able to measure how much 5 tomatoes should be exchanged for how many bags of rice