Barter trade is the oldest form of trade, which is a direct exchange of one goods for another deemed

to be of approximately equivalent value without any flow of money taking place. It is a primitive way of exchanging. In primitive society, people exchanged goods according to their needs. But with the development of the civilization, the simple way of exchanging goods could no longer meet the demands of people; therefore, a new but more convenient means-money appeared. But the trade of barter did not totally disappear. In intemational trade, a certain amount of foreign exchange is dispensable. For those countries, which do not have enough foreign exchange, they can solve the problem by choosing barter trade.