What is a Commodity? Definition and Type of Commodity
A commodity is a term in economics often found in businesses in the trading sector—you may need to learn the meaning of commodities, especially for people unfamiliar with the economic field.
However, only some people are looking for the meaning of the word commodity on the internet to increase their knowledge about this one economic term.
If you are one of those people looking for an understanding of the meaning of the word commodity, in this article, we will discuss it for you so that you know more about the world of business commodities that run around us. Check out our review of the meaning of commodities below.
What is a Commodity? Commodity is
In the Indonesian dictionary, a commodity is the main product, merchandise, or goods for trading. Commodities can also be interpreted as raw goods that can be classified based on quality standards. Examples of commodities often exported to international markets are coffee, rubber, palm oil, wheat, etc.
Another meaning of commodity is goods that can be traded for profit. In the sense of the term commodity is a collection of products or goods that have a physical form and are stored for a certain period for various needs and can be exchanged for other products that have an equivalent value to the goods.
Goods in the form of commodities are generally goods in the condition of works of art, such as handicrafts, that can be traded on an export basis. In addition, entities can also be in the form of products that have yet to be processed for the export needs of a country.
Generally, goods or objects considered commodities are the main merchandise, agricultural products, or crafts used for export trade.
Types of Commodities Are
There are several commodities that you must know. These things can be classified according to the business that runs with these commodities. Here are the types of entities that you must know.
1# Agricultural Commodities
Types of agricultural commodities are commodities that produce directly from nature. This commodity can be obtained from forests or agriculture, managed and managed to be sufficient for export stocks in a country.
Agricultural commodities from Indonesian forest products urgently needed for export are rubber, cotton, palm oil, and so on. Farmers manage farming products from the land, for example, coffee, cloves, soybeans, and many others.
2# Mining
Commodities Other commodities are mining commodities produced from the processing of mining products carried out by the company for export. Several types of mining commodities, for example, gold, silver, copper, nickel, and so on.
A large-scale company usually manages this type of commodity by utilizing sophisticated equipment to obtain it. Mining products are agricultural products that cannot be renewed, making this commodity very expensive.
3# Energy
Commodities Energy commodities are commodities obtained from the earth and natural energy sources. This commodity is obtained from mining, which has been processed into energy and marketed. Examples of energy commodities that have been processed are fuel products such as gasoline, diesel, palm oil, and so on.
This type of commodity is also very expensive because this commodity is a staple commodity that is needed in various countries. In addition, this type of commodity is also a type of commodity that will run out in the future because it cannot be renewed.
5# Livestock Commodity Is
the last type of commodity is livestock commodity, where the main product of this commodity is that produced from livestock. This commodity is one of the staple commodities that is needed a lot because the product is used as an ingredient for daily consumption.
Examples of commodities produced from these farms are beef, eggs, milk, chicken meat, fish, and so on. One of the livestock commodities widely exported is beef and pork, which are widely exported between European countries.
Closing
The explanation we described above shows that commodities are very important for the movement of the economy and business. With various commodity products, running a business in the commodity sector can meet multiple aspects of community needs.
Article our about the meaning of commodities that you must know. The article that we convey above can add to your knowledge.
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