The commodity is a basic economic good, standardized in terms of its quality and quantity using as financial instruments in world’s exchanges. In other words, a natural product extracted by the mineral resources exploitation and agriculture then traded worldwide. Commodities are differentiated into 2 main parts: hard and soft commodities.
- Crude oil
This type is called hard because of its industry essence, which generally included mining operations.
Soft type is involved in the agricultural sector, its byproduct is harvested and cultivated goods.
Commodity called standardized goods because no matter the area where a product was produced, the main thing is its quality and quantity, which should be shipped according to the international rules and conditions.