Bargained For Exchange Flashcards, test questions and answers

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What is Bargained For Exchange?

The concept of a bargained for exchange is an essential part of economic and business activity. A bargained for exchange is a situation in which two parties enter into a voluntary agreement to exchange goods, services, or money in order to obtain some sort of advantage from the deal. This type of transaction involves both parties agreeing to terms that are mutually beneficial and desirable.For example, when a customer purchases a product from a store, they are engaging in a bargained for exchange whereby they are willing to pay the store’s asking price in order to receive the item. The store benefits by receiving payment while the customer receives their desired product. In this way, both parties benefit from the transaction and can be said to have reached an equitable agreement.Bargained for exchanges also occur in larger business deals such as mergers or acquisitions where one company purchases another company or takes it over completely. In these situations, both companies must come together and agree on terms that will benefit each party involved. This type of negotiation often involves extensive negotiations and can take weeks or even months before all sides reach an amicable solution that works for everyone involved. Beyond products or businesses being exchanged between two parties, bargained for exchanges also occur when people agree on wages or salaries between employer and employee relationships as well as when tenants rent properties from landlords at pre-agreed upon rates and conditions. In each case, there is mutual benefit derived from the exchange through goods or services changing hands according to specific agreed upon conditions by both parties involved in the transaction.