(i) Each person must have a surplus of stock.
(ii) The needs of both the parties must coincide i.e. each party is willing to take the goods each other desperately.
(iii) The buyer and the seller should meet personally to effect the exchange.

(i) Producers and traders may not have the required funds at the time of their need.
(ii) The problem of finance affects the producer, trader and the consumer.
(iii) This Hindrance is known as Hindrance of Finance.

(i) The Consumer may not buy the best products available in the market because they may not possess the knowledge of the market conditions.
(ii) Hence, it is known as hindrance of knowledge.

The night market was called as Allangadi.

Day market was called as Nalangadi.

Barter system refers to a system where "Goods were exchanged for goods prior to invention of money".

The whole of commerce activity has emerged from barter system into a multi- imensional and multifaceted scientific system consisting of courses like Monetary system, Mail-order business, Hire purchase system, Instalment purchase system and so on.

1. Each party to barter must have surplus stocks for the trade to take place.
2. Both buyers and sellers should require the goods of each other deseperately i.e., double coincidence of wants.
3. Buyer and Seller should meet personally to effect the exchange.

The place where the goods were sold was called "Angadi".Day market was called as Nalangadi while the night market was called as Allangadi according to St.PoetIlangoin Silapathigaram, Madurai-Kanchi.

(i) "Kautilya's Arthasastra" describes economy in Mauriyan time. This brought out history of marketing practised some 2,000 years ago.
(ii) According to Kautilya, trade in Medieval India was centralised.
(iii) Since the commodities produced could not be sold in the location of production, the state designated certain places for selling the commodities.
(iv) It levied duties on goods brought into the city and could be sold after payment of duty.
(v) Kautilya gave importance for the state in relation to treasury, taxation, industry, commerce, agriculture and conservation of natural resources.
(vi) Kautilya's Arthasasthra focused on creation of wealth as the means to promote the well being of the state.

Port towns like Tondi, Korkai, Puhar and Muziri were developed by Pandiya kingdom.

Big cities like Poompuhar had two towns called 'Maruvurappakam' (inland town) and Pattinapakkam (Coastal town) had market and bazaars where many merchants met one another for the purpose of selling or buying different kinds of commodities and food stuff.

1. Roman and Greek traders frequented the ancient Tamil country and forged trade relationship with ancient Kings of Pandiya, Chola and Chera dynasties.
2. Cholas had a strong trading relationship with Chinese Song Dynasty.
3. The Cholas conquered the Sri Vijaya Empire of Indonesia and Malaysia to secure a sea trading route to China. During the 16th and 18th centuries, India's overseas trade expanded due to trading with European companies.
4. The discovery of new allsea routes from Europe to India via Cape of Good Hope by Vasco da Gama had far-reaching impact on the civilized world.
5. The arrival of Portuguese in India was followed by the advent of other European communities.
6. They gained a strong foothold in India's maritime trade by virtue of their strong naval power. 

1. According to Kautilya, trade in Medieval India was centralized.His Arthasastra describes economy in Mauriyan time.
2. The State designated certain places for selling the commodities.
3. It levied duties on goods brought into the city and could be sold after payment of duty.
4. The authorized merchants were allowed to engage in trade to sell at prices fixed by the chief controllers of State Trading.
5. The profit margin was fixed from 5 percent to 10 percent for imported goods.Kautilya gave importance for the State in relation to treasury, taxation, industry, commerce, agriculture and conversation of natural resources.
6. The creation of wealth is focused as the means to promote the well-being of the state.
7. He encouraged the maintenance of perfect balance between State management and people's welfare through trading activities.

Coastal Trade in Ancient Tamil Nadu:
1. Big cities like Poompuhar had the 'Maruvurappakam' (inland town) and 'Pattinapakkam' (coastal Town) had market and bazaars where many merchants met one another for the purpose of selling or buying different kinds of commodities and food stuff.
2. Port towns like Tondi, Korkai, Puhar and Muziri were always seen as busy with marts and markets with activities related to imports and exports.
3. In such a brisk trade, people of the coastal region, engaged themselves in coastal trade and developed their intercontinental trade contacts.
4. They were engaged in different kinds of fishing pearls, and conches and produced salts and built ships.
5. Boats like 'Padagu', 'Thimil', "Thoni', 'Ambu' 'Odampunai', etc... were used to cross rivers for domestic trade while Kalam, Marakalam, Vangam, Navai, etc.. were used for crossing oceans for foreign trade.