The social division of labor, the degree of development of machinery and technology, have determined the specialization of manufacturers and the expansion of trade in goods, creating difficulties and barriers. The main difficulties were:



the impossibility of matching the needs of bidders and buyers: manufacturer A must offer product X, and manufacturer B must offer product Y. Suppose that B needs X, but A does not need Y, but product Z. Then B should they look for the manufacturer C of product Z, who needs product Y. If he finds that he is changing Y to Z, then he returns to make the exchange that really interests him, respectively, goods Z with goods Y. So they are satisfied with both producer A and B. But this modality hinders the exchange and in some cases makes it even impossible.

Difficulties in determining the value: the exchange of goods for goods does not allow using a quick tool for estimating the value of goods and reporting from this point of view between the exchanged goods.

The inability to divide into elements. Many categories of goods could not be separated, for their sale it was necessary to exchange large quantities of other goods for the consumer needs of the buyer.

In addition to the objective process of the evolution of the production of goods, these difficulties have created the conditions for some goods of intrinsic value to mediate the exchange of goods, respectively, to become a common equivalent for all other goods. Thus, direct exchange begins to disappear. This stage became known as the general equivalent by region: cattle, furs, millstones, tobacco, etc. Over time, metals, starting with copper and ending with gold, took the role of the general equivalent. The latter possessed physico-chemical properties that specifically designed it for this role (that is, high value in a small volume, ideally divisible, without loss of value, representing the uniformity of all divided parts, unchangeable and convenient for transportation).



Finally, as a first step, commodity money appears, which is eventually fixed on precious metals. With the advent of money, the world of goods is divided into two: at one pole, all ordinary goods with their own utilities appear, and at the opposite pole, a special commodity that plays the role of money and which can be replaced by any of the existing goods. Why pay full price? Browse UK coupon codes on Coupon Mama .