Concept in Definition ABC

The word commodities is a term that comes from the English language, more precisely it corresponds to the plural of the term commodity what in this language is used to refer to products, merchandise or raw materials.

Meanwhile, the hyper-extended use that is given to this word, especially in the world economic and commercial, has generated that in other languages ​​such as ours has been adopted and used as own. It is even a term that we usually hear very assiduously in the media communication the world and not to mention if the country in which you live is a producer par excellence of commodities, in this case, the attention will be special and it will happen that when you see the economy tied to these the mention and interest will be recurring ...

Commodities then are products, raw materials. The commodity can be produced by man or it can be present in the nature of a geographical place in very important quantities. In the latter case that we mentioned, we can cite commodities that have a specific use at the time of the

feeding and the production of food products, such as soy, wheat or corn.
And in another order of commodities but that respond to the same characteristic of being in nature we must mention to oil, to gold.

Now, it is important that we also point out that not all the elements that are found in abundance in nature will be commodities, for example the Water It is not, and this is so because the other essential feature of a commodity is that it must have a utility, of value, in economic terms, to be considered as such. Likewise, the little degree of differentiation is another brand of the commodity, normally they do not present difference some wheat that is harvested in a Latin American country with that that can be harvested in another part of the same continent.

It is worth noting that commodities have a price in dollars, for example, in some places it will appreciate plus a commodity if the value of the dollar is high, while it also suffers when it falls in consideration.

Topics in Commodities