Question

1. Why is the analysis of the commodities important in the study of world civilizations?

Answer 1

Fundamental analysis of commodities examines the commodities so as to predict the future path for a reduced resistance of prices and as a result influences the world civilizations which influence the economy

Explanation:

Analysis of commodities is based on the law of supply and demand. Analyzing the commodities helps to establish how they are in supply or in demand and the influence on the price. When the demand exceeds the supply, the price is higher while the supply is greater than the demand, the price is lower. World civilizations use analysis of commodities to predict future prices and forecasts of the economy. As a result, world civilizations have a potential to control, guide or make policies with regards to the economy.

A commodity is the basic product in economics and commerce that is interchangeable with the same of products. In the process of goods and services production, commodities are often used as inputs. Commodities for trading must meet the specified basics requirements. In the study of world civilizations, the analysis of commodities plays a very significant role (Adams,2018). Throughout the history, commodities have been in the forefront of trade advancement and globalization. One of the biggest innovations in the history of mankind is the exploration new terrains and trade routes.

Before the standard classical civilization had an agreement on value of goods like silver and gold, trade was based on crop harvests and livestock. People during the human civilization era people exchanged commodities for commodities. Through this trade urbanization developed in regions where people conducted the trade. With urbanization there was the development of industries creating job opportunities for various people. There was also advancement and development of art and science.