Barter is a type of trade where goods or services are exchanged for a certain amount of other goods or services; no money is involved in the transaction. It can be bilateral or multilateral as trade. It is a word frequently used as a synonym for 'negotiate/negotiation', but this usage is incorrect. A common form of barter during colonial times was tobacco. Also bushels of grain and wampum were popular forms.

Barter trade is common among people with no access to a cash economy, in societies where no monetary system exists, or in economies suffering from a very unstable currency (as when hyperinflation hits) or a lack of currency.

A disadvantage of using bilateral barter is that it can depend upon a mutual coincidence of wants. Before any transaction can be undertaken, each party must be able to supply something the other party demands. To overcome this mutual coincidence problem, some communities have developed a system of intermediaries who can store, trade, and warehouse commodities. However, the intermediaries often suffer from financial risk.

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NYT > World Business

Britain Comes to Grips With a Slowdown
Fri, 08 Aug 2008 02:24:51 -0000
Britons have come to the realization that after 17 years of uninterrupted growth, the country’s economy is moving closer to recession, and may already be in one.
Interest Rates Kept Steady in Europe
Fri, 08 Aug 2008 02:25:16 -0000
The European Central Bank and the Bank of England on Thursday left their benchmark interest rates unchanged.
Sales in China Raise Lenovo Profit
Fri, 08 Aug 2008 02:07:12 -0000
The Lenovo Group, the PC maker, said that its quarterly profit rose 65 percent as strong sales in China and emerging economies offset weakness in the United States.
Slumping Truck Sales Weigh on Toyota in Quarter
Fri, 08 Aug 2008 02:25:37 -0000
The automaker said that its worldwide net income for the quarter fell 28 percent, hurt by slumping sales of its Tundra pickup truck and S.U.V.’s made and sold in North America.
Allianz Struggles to Find Dresdner Buyer
Fri, 08 Aug 2008 02:25:57 -0000
A sale of Dresdner, the banking unite of the German insurance company, is considered a crucial step in the consolidation of the German banking sector.
Andrea Pininfarina, Chief of Car Designer, Dies at 51
Fri, 08 Aug 2008 01:51:28 -0000
Mr. Pininfarina was the chairman and chief executive of the Italian company founded by his family that designs Ferraris and other cars.

Portfolio.com: Business Travel

The Miles Bye Club
Tue, 05 Aug 2008 04:00:00 -0000
The airline guys who invented frequent-flier programs almost 30 years ago and then turned them into wildly successful marketing vehicles eventually began calling miles "the nation's second currency." After all, they said with a warranted appreciation for what they had wrought, what else in America was so easily earned, so widely accepted and so valuable? These days, however, frequent-flier miles are looking a lot like Zimbabwean dollars. The currency is being devalued with spirit-crushing regularity. There's less and less to buy with it now that airlines are slashing their route networks and seating capacity. And today's frequent-flier program managers have been given a mandate from their C-suite bosses: Generate fast cash by squeezing frequent fliers with a battery of fees—even though the new charges are destroying the long-term allure and profit potential of the plans. "I understand why business travelers are disgusted," the manager of a major frequent-flier program told me a couple of weeks ago. "My bosses want revenue and they want it now. They want it from the partners who buy the miles and from the travelers who earn awards. And they don't want me to have access to the seats [for awards] that the revenue-management guys think they can sell. So what am I left with? Travelers understand that they can earn all the miles they want. But using them? Not so much." Want a graphic example of how fast the frequent-flier programs are devolving? Consider the developments at United Airlines, which operates Mileage Plus, the nation's second-largest plan: To shore up its cash position last month after another quarter of multibillion-dollar losses, United turned to Chase, the bank that issues Mileage Plus credit cards. Chase promptly ponied up a $600 million prepayment for miles that will be distributed to Chase customers in the form of bonuses for taking and using any of the half-dozen flavors of Visa cards emblazoned with the Mileage Plus logo. Although the mileage deal was bundled with other cash considerations that Chase extended to United, it's not hard to figure out how many miles that $600 million bought. Big frequent-flier program partners like credit card banks usually pay around a penny a mile, so United will need to mint about 60 billion new miles for Chase. That'll expand United's current pool of 511 billion unredeemed miles by about 12 percent. The devaluation of United's "currency" is worrisome enough. But since United's route network is shrinking—by the end of the year, the airline estimates its worldwide seating capacity will be 10 percent lower than it was at the end of 2007—Mileage Plus members are looking at double-digit inflation even as the supply of goods to "buy" with Mileage Plus miles is contracting by double digits. United is not alone in using its mileage program as a cash cow. Continental Airlines, which operates the OnePass program, recently received a cash infusion from Chase, also the issuer of OnePass credit cards. And Delta Air Lines might not have survived its 2005 bankruptcy without a huge forward purchase of SkyMiles by American Express, which issues Delta's credit cards. And just like United, all of the big airlines are slashing their seating capacity by 10 to 15 percent this fall as they mint and sell billions of new miles.  The inevitable economic effect of too many miles chasing too few seats: Airlines are hiking, sometimes by hundreds of thousands of miles, the amounts needed to claim an award. Delta, for example, revised its award chart again just last week. Last year it took the unprecedented step of slapping restrictions on its most expensive (and formerly unrestricted) SkyMiles awards. For the first time ever, Delta told its fliers: There are seats you can't have no matter how much of our currency you want to spend. The new three-tiered award structure Delta unveiled last week revives unrestricted awards, but at a brutally high cost. The best ones, redeemable for international business-class travel to Europe or Asia, now cost upward of 370,000 miles round-trip, or about 100,000 miles more than last year. Continental's program is also undergoing a major devaluation. Earlier this year, it raised award levels by thousands of miles. Last month, it raised fees and now charges a co-pay of as much as $500 to claim an upgrade award. And last week it announced it would do what Delta has just abandoned: impose restrictions on its most expensive, previously unrestricted awards. And the concept of a "free" seat as a frequent-flier award is gone too. Years ago airlines decided an award ticket didn't include applicable taxes and fees. Then they imposed charges if you booked an award too close to departure, claimed one by telephone, or changed your booking after the award was issued. Last month came the next wave: Fees of as much as $100 simply for claiming the award. American Airlines even invented a $5 omnibus fee. Its purpose? By the airline's own admission, the fee applies if you somehow managed to avoid all the other award fees it now charges. Depending on the airline, your destination, and your time frame, a formerly free award seat can cost you as much as $300. As a result, airline programs now give fliers less for their loyalty than hotel frequent-guest plans, gas-rebate credit cards, or other frequency schemes. About a month ago, one frequent-flier program manager told me that he thought "a penny a mile is a pretty damn fine return on your loyalty." That's a shocking assertion considering that frequent-flier programs once paid you three to five cents. And it also behooves frequent fliers to look elsewhere for a return. Take Chase, for example. Its United Mileage Plus and Continental OnePass cards generally give customers one mile of credit for each dollar charged. In other words, a 1 percent rebate for every dollar spent. But why settle for that when Chase's Freedom Visa Signature offers you $50 cash back after your first charge, a 3 percent rebate on selected purchases, and 1 percent back on everything else? The Fine Print… Should travelers simply stop playing in the frequent-flier programs? No, because the plans remain the vehicle the airlines use to confer elite status recognition and upgrades. So the obvious solution is to use frequent-flier programs only to accrue miles earned from flying. In most cases, those are still the only miles that count toward elite airline status anyway. For some other thoughts about how to beat the system, read last fall's Frequent Flier Fallacies column. Related LinksDeals Taxi for TakeoffWill It Fly?Bad Times at the Airport
Heartbreak Hotels
Tue, 29 Jul 2008 04:00:00 -0000
The Summer Olympics open in Beijing on the auspicious date of 8-8-08—which won't be particularly lucky for the city's hoteliers. There won't be nearly enough visiting heads on hotel beds during Beijing's big event. Like so many Olympics before it, the 2008 Summer Games aren't turning out to be much of a tourist magnet for the host city. About 420,000 people visited Beijing last August; Chinese officials are expecting only about 10 percent more next month. But 13,000 new rooms have already been built in the Chinese capital, and the new inventory is expected to reach 30,000 by the end of the year. The glut is particularly noticeable in Beijing's luxury tier, where there are about 50 five-star properties, up from fewer than 20 five years ago. The result: Occupancy rates and room prices have been falling; Chinese tourism officials admitted earlier this month that almost half of the city's four-star inventory was still available for the Olympics period. Beijing's Olympian oversupply is making headlines, but the same basic tale is being spun in many places around the globe. Especially in the United States and the Caribbean, there suddenly aren't enough travelers to fill existing properties. More hotels are opening as they emerge from the three- to five-year property-development pipeline. As airlines hack away at autumn flight schedules and raise fares, there's likely to be even fewer people traveling. The U.S. hotel industry posted a record $139 billion in revenue last year and profits surged 5.3 percent to $28 billion. But the company that produced those rosy statistics, Smith Travel Research, says 2008 will be "tougher." Frits van Paasschen, chief executive of Starwood Hotels & Resorts Worldwide, whose brands include Sheraton, Westin, St. Regis, and W, is blunter. Domestic "lodging demand dropped significantly in May," he admitted last week. The declines in some markets are startling. In Hawaii, hotel occupancy plummeted by more than 11 percent in early July. Almost half of the rooms on the Big Island were empty, and one in three rooms on Maui were dark. Things weren't any better in suburban Boston, where occupancy this year is running at about 63 percent. And PKF Hospitality, the much-consulted experts, suggests a direct relationship between declining airline capacity and hotel occupancy: For every one percent drop in the number of airline seats, hotels will see a 0.39 percent decline in demand. That would translate to a 3.9 percent fall in lodging demand as carriers trim 10 percent of their capacity this fall, PKF says.  Hard hotel times aren't likely to elicit a lot of sympathy from those of us who pay the bills. Nightly rates at the nation's 4.4 million rooms have been rising at about twice the rate of inflation for years as hotels made the most of rising demand. Or as the travel manager of a corporation with thousands of business travelers told me graphically last week: "Hotels made it clear who had the hammer when we negotiated rates the last couple of years. But when we start doing contracts for 2009 after Labor Day, I'll have the hammer. And I'll be whacking some knees to get my prices down." To shore up sagging bookings, hundreds of hotels around the country are wooing travelers with free gasoline cards that slice as much as $50 off the effective nightly room rate. Other hotels are dabbling in more traditional value-added inducements: free breakfasts or dining credits in the hotel restaurants; complimentary massages or a free round of golf; gift cards at nearby department stores; and a blizzard of swag such as logo shirts, hats, and sunglasses. (See a slide show of hotel deals here.) In the Caribbean and Hawaii, where flight cuts have made it much harder for guests to visit, concessions have been even more dramatic. Sandals, which operates a dozen couples-only all-inclusive resorts in Jamaica, Antigua, St. Lucia, and the Bahamas, has been advertising discounts of as much as $1,100 a couple. The savings is offered as an "air credit" against your bill to offset the high price and inconvenience of flying. More than a dozen hotels in the Turks and Caicos have banded together to offer guests a fourth night free. A travel packager has been promoting summer vacations on the lush (if rainy) Hawaiian island of Kauai, with free car rentals, meals, wine, and, of course, free nights. There is one thing hoteliers aren't yet offering in great supply: lower room rates. "Luxury properties especially hate lowering their room rate" because they think it hurts their image, explains Michael Matthews, whose résumé includes notable marketing and managerial stints at Rosewood, St. Regis, Ritz-Carlton, and Regent hotels. "If he can avoid cutting the rate in the downtimes, a general manager will give you virtually anything else you ask for: room upgrades, free cabanas at the pool, a suite, limo service, spa treatments, free meals." To make sure you get the best perks, "call the general manager before you arrive and introduce yourself," Matthews says. "Don't be pushy, but let him know you'd like more for your rate." What happens if value-added perks don't put our heads on their beds this fall and winter? "We'll make the offers even richer," the top marketing executive of a major mid-priced brand told me last week. "As a last resort, we'll look at rate cuts. But I hope we don't get to that." The Fine Print… Hotels in New York, Philadelphia, and Miami continue to do well, primarily due to an influx of European travelers who are taking advantage of the weak dollar. Bargains will be scarce in those cities. But Las Vegas is already suffering from a massive decline in visitors and prices. Nevada gaming officials say the take at the city's casinos was down in May for the fifth consecutive month. And a website devoted to Vegas says nightly room rates have plunged after five years of escalating prices. Related LinksAre the Olympics Worth It?Lenovo's Consumer PCsStrong Interest in Summer Olympics Spurs Vibrant Ad Sales
Table for One: Barcelona
Thu, 24 Jul 2008 04:00:00 -0000
Thanks to facilities built for the 1992 Olympics and burgeoning international investment (it's up 26 percent this year), Spain's cultural capital is giving Madrid a run for its money as the country's top business destination. And thanks to chef Ferran Adrià, it challenges Paris as global culinary hub. Love foamed beetroot or hate it, it's difficult to deny that Adrià fomented a food revolution by marrying science and haute cuisine. His eatery, El Bulli, is two hours outside the city, and while his influence can be seen from Australia to Chicago, it may be most obvious in downtown Barcelona. Even visitors who can't squeeze into Adrià's culinary temple can experience experimental fare—but they can also turn to far more conservative cuisine. Seafood is the centerpiece of most meals here, and local shellfish plays a leading role in the city's cuisine. Tapas are also widespread, even at more formal restaurants. That's a boon for solo travelers, who can choose from a huge range of small dishes (razor clams and olives are popular), washing them down with beer, vermouth, or cava produced in the nearby Penedès region. These light meals are served at all hours, which is helpful in a country where eating out is a form of nightlife. Most restaurants don't open until 8 p.m.; venture in before 9 p.m. and it's likely to be you and the waiters. Here, a half-dozen great places to dine alone, whether early or late. Ciutat Vella: Commerç 24 C/Commerç 24 +34 93 319 21 02 Solo diners eat here for the same reason they might go alone to a museum: to enjoy the artwork undisturbed. Carlos Abellán was a line chef at El Bulli before starting his own restaurant, and Adrià's influence is visible down to Abellán's trademark "Kinder egg," which arrives foaming with truffle and potato. The open kitchen is brightly lit so diners can watch the cooks wield syringes and aerosol cans. Minimum order is three tapas, but most guests order the tasting menu of 10 small courses. The waitstaff gravely explains the contents of each dish—usually not terribly obvious—and enforces the strict non-smoking policy. Dress: Business/business casual Prices: Expensive Reservations: Not necessary for the bar; otherwise recommended Barceloneta: Agua Passeig Marìtim 30 +34 93 225 12 72 Terraced restaurants overlooking Barceloneta seem a logical place to find outstanding seafood, but many are tourist traps serving sad, soggy paella. Agua is an exception and locals know it, so make a reservation if you plan to sit outside. The view of a rocky promontory is a big draw, but Mediterranean dishes like monkfish and clam stew or salmon tartare with leeks run a close second. The jamón ibérico on toast is worth trying if only because the specialty ham is so hard to obtain abroad.  Dress: Business/business casual Prices: Moderate Reservations: Recommended for the terrace  Barceloneta: 7 Portes Passeig Isabel II 14 +34 93 319 30 33 "1 p.m. to 1 a.m., uninterrupted" is written across the front door of this restaurant, the oldest in Barcelona. While it is among the best fish joints, 7 Portes does well to advertise its most salient feature in a city where it is gauche and nigh impossible to eat early. Popular "rich man's paella," is so dubbed because the chef has shelled the lobster, mussels, and clams. The dining rooms are divided into smoking and non-smoking, which breaks down into locals and visitors, pleasure and business, respectively. Famous guests have included Pedro Almodóvar, Salvador Dalí, and Orson Welles. Dress: Casual Prices: Moderate to expensive Reservations: During peak hours Ciutat Vella: Ca L'Isidre C/Les Flors 12 +34 93 441 11 39 Ca L'Isidre is the grand dame of Barcelona cuisine, serving Catalan favorites like morcilla (blood sausage) and lamb brains in black butter as well as less advanced options. The menu changes daily, depending on what the chef finds in La Boqueria, Ciutat Vella's iconic market. The stately restaurant has only 50 seats, and solo diners are tucked into a nook at the front. (The restaurant has 50 seats, the nook four.) Service is highly professional, down to the ritual of cutting and lighting the after-dinner cigar. El Raval may have been a more salubrious part of town when the restaurant opened in 1970; these days it is wise to take a taxi. Dress: Fashionable Prices: Expensive Reservations: Recommended Montjuïc: Oleum Parc de Montjïuc, Palau Nacional +34 93 289 06 79 Located in the National Art Museum of Catalunya, this three-year-old restaurant has created more buzz for the institution than its Romanesque collection. It has soaring multicolored marble walls, and an angled overhead mirror reflects the stunning hilltop view back at the well-heeled lunchers (dinner is by prearrangement for groups only). The food is an upscale version of menu del día, prescribed by Franco to ensure a filling midday meal with wine for workers. Along with a stray foam or two, the English-language menu sports some charming clunkers like "cream of gourd with artichokes to the rosemary and creaking of ham"—a winner, by the way. Dress: Business/business casual Prices: Moderate Reservations: Not necessary L'Eixample: Paco Meralgo C/ Muntaner 171 +34 93 430 90 27 This minimalist bar has everything that is fun about tapas—a wealth of choice, energetic crowd, bantering waiters—while eliminating intimidating elements with an English menu and balanced gender ratio (Barcelona tapas bars are often dominated by older men). Be prepared for conversation here—your neighbors won't be shy with suggestions. Must-trys include the potato bomba and raw cod salad. An elderly customer took pains to explain that the Catalan custard, an eggy crème brulée, is actually a local invention. "The French stole it!" Dress: Casual Prices: Inexpensive Reservations: Not necessary Related LinksFace to Face With the Monster ThickburgerFace to Face With the Monster ThickburgerTable for One: Paris

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