Commodity is considered to be all goods or products that have a low profit value, this is caused either because it is found in large quantities in nature or that they do not undergo relevant modifications, an example of these materials would be wheat, soybeans and natural items at the end. Because they do not suffer an important distinction, they are considered as "generic" , however this would not be the only condition to be indicated within the group of commodities, for example fresh water is not a commodity, although it cannot suffer significant modifications and that it has the same properties, wherever it comes from, fresh water has a different value and utility in each region.
The main characteristic of a commodity is that when it comes to converting it into an investment, its profit value is scarce or very small. In general terms, when talking about commodities, primary goods or materials are being mentioned; According to these concepts, what is "commoditization" was implemented. This process occurs when an industrial material can be copied by smaller companies and manufactured with lower cost materials. For example, in the pharmaceutical area, many drugs are presented under trade names manufactured by specialized laboratories.. When that therapeutic drug is imitated with lower value materials by smaller companies, then it would be talking about the "generic" manufacture of the product, of course, it is lower cost compared to the original drug.
Otherwise, all those goods that increase in value according to the modifications they undergo in their manufacture can be mentioned, as is the case with vehicles; Vehicles or automobiles raise the cost of their value, because as time passes, by trend, their initial structure undergoes changes in accessories. All vehicles have a different price and this will vary according to the model, the year of manufacture, small details in the bodywork or even accessory modifications that it has, however despite its different prices it will fulfill the same function that is to provide transport to its owner.
