RAW Material Vs Product

Although they can often be confused and used interchangeably, the terms merchandise and product are very different. A good is a raw material that is used to make finished products. A product, on the other hand, is the finished product that is sold to the consumer. Raw materials and products are part of the production and manufacturing process; The main difference is their position in the chain foreign exchange market today. Raw materials are usually at the beginning of the production phase, while products fall into the final phase.



 COMMODITY

A commodity is a basic good that is used as an input for the production of goods and services. This means that companies use raw materials in the manufacturing process to turn them into everyday consumer goods. The raw materials are found in most of the products that end up in the hands of consumers, including tires, tea, ground meat, orange juice, and clothing. The most common raw materials are copper, crude oil, wheat, coffee beans, and gold.1 Raw material can be divided into two different categories: hard and soft raw materials forex trading platforms in India. Commodities are those that are grown and cannot be stored for long periods of time. Some examples are coffee, cocoa, orange juice, and sugar. Agricultural commodity futures are more volatile than others due to the unpredictable risks involved, especially weather conditions. Hard raw materials, on the other hand, are mined and mined, such as oil, natural gas, and precious metals. All of these commodities make up an important part of the futures market. As technology advances, new forms of goods still exist. This includes foreign currencies, cell phone minutes, and bandwidth.

 PRODUCT

A product can differentiate itself and the manufacturer can create added value, as well as through branding and marketing. Products are made from raw materials and then marketed and sold to consumers. Products, also known as consumer goods or finished goods, are purchased for the consumption of the average consumer. Products are generally classified as durable or durable goods about foreign exchange market you. Durable consumer goods, such as appliances, furniture, and jewelry, are generally durable and are rarely purchased. Consumables like gasoline, groceries, and tobacco products burn out quickly or need to be replaced frequently. The products are also traded and can be found in many investment portfolios. Companies that manufacture consumer goods are generally considered safe investments due to their relative stability and historical performance.



 SPECIAL CONSIDERATIONS

The idea of differentiation arises within goods and products. Products are not differentiated if they operate in separate but similar product markets. For example, a butcher that sells organic beef does not offer a differentiated product from a butcher that sells non-organic beef. In contrast, the butcher who sells organic meat operates in a differentiated market for raw materials. The organic meat butcher can only offer a differentiated product if it offers a different value than other organic meat butcher's best broker in India for forex. For example, the first organic meat butcher may differentiate their product from other organic meat butchers by marketing the unique way they cut their meat, giving it a unique flavor, while other organic meat butchers only use traditional methods, that do not give it a unique flavor. . taste. The first butcher distinguishes its product from the competition by this technology and its commercialization.

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