In economics , a commodity is an economic good , usually a resource , that specifically has full or substantial fungibility : that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.
109-454: A merchant is a person who trades in commodities produced by other people, especially one who trades with foreign countries. Merchants have been known for as long as humans have engaged in trade and commerce. Merchants and merchant networks operated in ancient Babylonia , Assyria , China , Egypt , Greece , India , Persia , Phoenicia and Rome . During the European medieval period ,
218-432: A 50 mg tablet of calcium is of equal value to a consumer no matter what company produces and markets it, and as such, multivitamins are now sold in bulk and are available at any supermarket with little brand differentiation. Following this trend, nanomaterials are emerging from carrying premium profit margins for market participants to a status of commodification. There is a spectrum of commoditization, rather than
327-408: A binary distinction of "commodity versus differentiable product". Few products have complete undifferentiability and hence fungibility; even electricity can be differentiated in the market based on its method of generation (e.g., fossil fuel, wind, solar), in markets where energy choice lets a buyer opt (and pay more) for renewable methods if desired. Many products' degree of commoditization depends on
436-485: A blue colour after light exposure which could be the one known as tekhelet ( תְּכֵלֶת ), used in garments worn for ritual purposes. The dye substance is a mucous secretion from the hypobranchial gland of one of several species of medium-sized predatory sea snails that are found in the eastern Mediterranean Sea , and off the Atlantic coast of Morocco . These are the marine gastropods Bolinus brandaris
545-595: A book called Merchants in Motion: the art of Vietnamese Street Vendors. Although merchant halls were known in antiquity, they fell into disuse and were not reinvented until Europe's Medieval period. During the 12th century, powerful guilds which controlled the way that trade was conducted were established and were often incorporated into the charters granted to market towns . By the 13th and 14th centuries, merchant guilds had acquired sufficient resources to erect guild halls in many major market towns. Many buildings have retained
654-649: A commodity is an object or a good or service ("product" or "activity" ) produced by human labour . Objects are external to man. However, some objects attain " use value " to persons in this world, when they are found to be "necessary, useful or pleasant in life". "Use value" makes an object "an object of human wants", or "a means of subsistence in the widest sense". As society developed, people found that they could trade goods and services for other goods and services. At this stage, these goods and services became "commodities". According to Marx, commodities are defined as objects which are offered for sale or are "exchanged in
763-476: A decade, where commodities as a whole trade at a price that is greater than their long term moving average . A Super Cycle will usually occur when there is large industrial and commercial change in a country or world that requires more resources to support the change. As prices rise, goods and services that rely on commodities rise with them. There have been four super cycles over the last 120 years worldwide. The first commodity super cycle started in late 1890 and
872-690: A diverse range of product types. These merchants were concentrated in the larger cities. They often provided high levels of credit financing for retail transactions. In the nineteenth century, merchants and merchant houses played a role in opening up China and the Pacific to Anglo-American trade interests. Note for example Jardine Matheson & Co. and the merchants of New South Wales . Other merchants profited from natural resources (the Hudson's Bay Company theoretically controlled much of North America, names like Rockefeller and Nobel dominated trade in oil in
981-425: A dye, the colour shifts from blue (peak absorption at 590 nm, which is yellow-orange) to reddish-purple (peak absorption at 520 nm, which is green). It is believed that the intensity of the purple hue improved rather than faded as the dyed cloth aged. Vitruvius mentions the production of Tyrian purple from shellfish. In his History of Animals , Aristotle described the shellfish from which Tyrian purple
1090-684: A group of musical performers; and dream merchant , which refers to someone who peddles idealistic visionary scenarios. Broadly, merchants can be classified into two categories: However, the term 'merchant' is often used in a variety of specialised contexts such as in merchant banker , merchant navy or merchant services . Merchants have existed as long as humans have conducted business, trade or commerce. A merchant class operated in many pre-modern societies . Open-air, public markets, where merchants and traders congregated, functioned in ancient Babylonia and Assyria, China, Egypt, Greece, India, Persia, Phoenicia and Rome. These markets typically occupied
1199-682: A lots of new jobs and opportunities. In 2008 when the Great Recession hit it put a halt onto the supercycle as GDP's across the world tanked leaving many economies in recessions. The next or the fifth supercycle could arrive as the world enters the final phases of the COVID-19 pandemic and starts to build massive clean energy infrastructure in view of the commodity price increase. Tyrian purple Tyrian purple ( Ancient Greek : πορφύρα porphúra ; Latin : purpura ), also known as royal purple , imperial purple , or imperial dye ,
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#17327724035711308-545: A lowly profession and it was often subject to legal discrimination or restrictions, although in a few areas its status began to improve. The modern era is generally understood to refer to period that started with the rise of consumer culture in seventeenth- and eighteenth-century Europe. As standards of living improved in the 17th century, consumers from a broad range of social backgrounds began to purchase goods that were in excess of basic necessities. An emergent middle class or bourgeoisie stimulated demand for luxury goods, and
1417-438: A market". In the marketplace, where commodities are sold, "use value" is not helpful in facilitating the sale of commodities. Accordingly, in addition to having use value, commodities must have an "exchange value"—a value that could be expressed in the market. Prior to Marx, many economists debated as to what elements made up exchange value. Adam Smith maintained that exchange value was made up of rent , profit , labour and
1526-577: A number of former Phoenician cities and colonies around the Mediterranean, such as Byblos (in present-day Lebanon ) and Carthage in North Africa. The social status of the merchant class varied across cultures; ranging from high status (the members even eventually achieving titles such as that of Merchant Prince or Nabob ) to low status, as in China , Greece and Roman cultures, owing to
1635-426: A place in the town's centre. Surrounding the market, skilled artisans, such as metal-workers and leather workers, occupied premises in alley ways that led to the open market-place. These artisans may have sold wares directly from their premises, but also prepared goods for sale on market days. In ancient Greece markets operated within the agora (open space), and in ancient Rome in the forum . Rome's forums included
1744-487: A rapid expansion in trade and commerce led to the rise of a wealthy and powerful merchant class . The European Age of Discovery opened up new trading routes and gave European consumers access to a much broader range of goods. By the 18th century, a new type of manufacturer-merchant had started to emerge and modern business practices were becoming evident. The status of the merchant has varied during different periods of history and among different societies. In modern times,
1853-474: A result, the dye was highly valued. The colored compound is 6,6'-dibromoindigo . Biological pigments were often difficult to acquire, and the details of their production were kept secret by the manufacturers. Tyrian purple is a pigment made from the mucus of several species of Murex snail . Production of Tyrian purple for use as a fabric dye began as early as 1200 BC by the Phoenicians , and
1962-423: Is a list of companies trading globally in commodities, descending by size as of October 28, 2011. In the original and simplified sense, commodities were things of value, of uniform quality, that were produced in large quantities by many different producers; the items from each different producer were considered equivalent. On a commodity exchange, it is the underlying standard stated in the contract that defines
2071-416: Is a reddish- purple natural dye . The name Tyrian refers to Tyre, Lebanon , once Phoenicia . It is secreted by several species of predatory sea snails in the family Muricidae , rock snails originally known by the name Murex ( Bolinus brandaris , Hexaplex trunculus and Stramonita haemastoma ). In ancient times, extracting this dye involved tens of thousands of snails and substantial labour, and as
2180-416: Is an instrument of labour"), even though they may not be produced specifically for the market, or be non-reproducible goods. Marx's analysis of the commodity is intended to help solve the problem of what establishes the economic value of goods, using the labour theory of value . This problem was extensively debated by Adam Smith , David Ricardo and Karl Rodbertus-Jagetzow among others. All three of
2289-526: Is derived from Anglo-Norman marchaunt , which itself originated from the Vulgar Latin mercatant or mercatans , formed from present participle of mercatare ('to trade, to traffic or to deal in'). The term refers to any type of reseller, but can also be used with a specific qualifier to suggest a person who deals in a given characteristic such as speed merchant , which refer to someone who enjoys fast driving; noise merchant , which refers to
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#17327724035712398-408: Is in the liquor. It is then set to boil in vessels of tin [or lead], and every hundred amphorae ought to be boiled down to five hundred pounds of dye, by the application of a moderate heat; for which purpose the vessel is placed at the end of a long funnel, which communicates with the furnace; while thus boiling, the liquor is skimmed from time to time, and with it the flesh, which necessarily adheres to
2507-443: Is of a blackish hue. The wool is left to lie in soak for five hours, and then, after carding it, it is thrown in again, until it has fully imbibed the colour. Archaeological data from Tyre indicate that the snails were collected in large vats and left to decompose. This produced a hideous stench that was actually mentioned by ancient authors. Not much is known about the subsequent steps, and the actual ancient method for mass-producing
2616-449: Is tightly dated by radiocarbon to the late 11th–early 10th centuries BC. Findings from this site include evidence of the use of purple dye found in stains used on pot shards. Evidence of the use of dye in pottery are found in most cases on the upper part of ceramic basins, on the inside surface, the areas in which the reduced dye-solution was exposed to air, and underwent oxidation that turned it purple. The production of Murex purple for
2725-563: Is well documented in ancient sources and in archaeological case-studies. Both Greek and Roman merchants engaged in long-distance trade. A Chinese text records that a Roman merchant named Lun reached southern China in 226 CE. Archaeologists have recovered Roman objects dating from the period 27 BCE to 37 CE from excavation sites as far afield as the Kushan and Indus ports. The Romans sold purple and yellow dyes, brass and iron; they acquired incense , balsam , expensive liquid myrrh and spices from
2834-820: The Forum Romanum , the Forum Boarium and Trajan's Forum . The Forum Boarium, one of a series of fora venalia or food markets, originated, as its name suggests, as a cattle market. Trajan's Forum was a vast expanse, comprising multiple buildings with shops on four levels. The Roman forum was arguably the earliest example of a permanent retail shop-front. In antiquity, exchange involved direct selling through permanent or semi-permanent retail premises such as stall-holders at market places or shop-keepers selling from their own premises or through door-to-door direct sales via merchants or peddlers . The nature of direct selling centred around transactional exchange, where
2943-600: The Iles Purpuraires at Mogador , in Morocco . The sea snail harvested at this western Moroccan dye production facility was Hexaplex trunculus , also known by the older name Murex trunculus . This second species of dye murex is found today on the Mediterranean and Atlantic coasts of Europe and Africa (Spain, Portugal, Morocco). The colour-fast (non-fading) dye was an item of luxury trade, prized by Romans , who used it to colour ceremonial robes . Used as
3052-545: The Mediterranean , becoming a major trading power by the 9th century BCE. Phoenician merchant traders imported and exported wood, textiles, glass and produce such as wine, oil, dried fruit and nuts. Their trading necessitated a network of colonies along the Mediterranean coast, stretching from modern-day Crete through to Tangiers (in present-day Morocco ) and northward to Sardinia . The Phoenicians not only traded in tangible goods, but were also instrumental in transporting
3161-650: The Timna Valley in Israel. The find, which was dated to c. 1000 BC , constituted the first direct evidence of fabric dyed with the pigment from antiquity. Murex purple was a very important industry in many Phoenician territories and Carthage was no exception. Traces of this once very lucrative industry are still visible in many Punic sites such as Kerkouane , Zouchis, Djerba and even in Carthage itself. According to Pliny, Meninx (today's Djerba) produced
3270-577: The brand , the user interface and the perceived quality. The demand for one type of stereo may be much larger than demand for another. The price of a commodity good is typically determined as a function of its market as a whole. Well-established physical commodities have actively traded spot and derivative markets. Soft commodities are goods that are grown, such as wheat , or rice . Hard commodities are mined . Examples include gold , silver , helium , oil , and Bitcoin . Energy commodities include electricity, gas, coal and oil. Electricity has
3379-399: The indigo plant ( Indigofera tinctoria L ), as well as in several species of shellfish. In 1998, by means of a lengthy trial and error process, a process for dyeing with Tyrian purple was rediscovered. This finding built on reports from the 15th century to the 18th century and explored the biotechnology process behind woad fermentation. It is hypothesized that an alkaline fermenting vat
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3488-523: The 12th century there was an upsurge in the number of market towns and the emergence of merchant circuits as traders bulked up surpluses from smaller regional, different day markets and resold them at the larger centralised market towns. Peddlers or itinerant merchants filled any gaps in the distribution system. From the 11th century, the Crusades helped to open up new trade routes in the Near East, while
3597-588: The 1530s. These included including Georg Giese of Danzig ; Hillebrant Wedigh of Cologne ; Dirk Tybis of Duisburg ; Hans of Antwerp , Hermann Wedigh, Johann Schwarzwald, Cyriacus Kale, Derich Born and Derick Berck. Paintings of groups of merchants, notably officers of the merchant guilds, also became subject matter for artists and documented the rise of important mercantile organisations. In 2022, Dutch photographer Loes Heerink spend hours on bridges in Hanoi to take pictures of Vietnamese street Merchants. She published
3706-590: The 17th century. They stood out in international trade due to their vast network – mostly built by Armenian migrants spread across Eurasia. Armenians had established prominent trade-relations with all big export players such as India, China, Persia, the Ottoman Empire, England, Venice, the Levant, etc. Soon they captured Eastern and Western Europe, Russia, the Levant, the Middle East, Central Asia, India, and
3815-474: The 18th century with governmental encouragement of nobles to invest in trade, and the lifting of old bans on nobles engaging in economic activities. As Britain continued colonial expansion , large commercial organisations came to provide a market for more sophisticated information about trading conditions in foreign lands. Daniel Defoe ( c. 1660–1731), a London merchant, published information on trade and economic resources of England, Scotland and India. Defoe
3924-467: The 21st century. Elizabeth Honig has argued that artists, especially the painters of Antwerp , developed a fascination with merchants from the mid-16th century. The wealthier merchants also had the means to commission artworks with the result that individual merchants and their families became important subject matter for artists. For instance, Hans Holbein the younger painted a series of portraits of Hanseatic merchants working out of London's Steelyard in
4033-532: The Byzantine court came to an abrupt end with the sack of Constantinople in 1204 , the critical episode of the Fourth Crusade . David Jacoby concludes that "no Byzantine emperor nor any Latin ruler in former Byzantine territories could muster the financial resources required for the pursuit of murex purple production. On the other hand, murex fishing and dyeing with genuine purple are attested for Egypt in
4142-548: The Far East trade routes, carrying out mostly caravan -trade activities. A significant reason for Armenians' massive involvement in international trade was their geographic location – the Armenian lands stand at the crossroads between Asia and Europe. Another reason was their religion, as they were a Christian nation isolated between Muslim Iran and Muslim Turkey. European Christians preferred to carry out trade with Christians in
4251-471: The Latin commoditas , meaning "suitability, convenience, advantage". The Latin word commodus (from which English gets other words including commodious and accommodate ) meant variously "appropriate", "proper measure, time, or condition", and "advantage, benefit". In economics, the term commodity is used specifically for economic goods that have full or partial but substantial fungibility ; that is,
4360-519: The Medieval period. A fraternity formed by the merchants of Tiel in Gelderland (in present-day Netherlands) in 1020 is believed to be the first example of a merchant guild. The term, guild was first used for gilda mercatoria and referred to body of merchants operating out of St. Omer, France in the 11th century. Similarly, London's Hanse was formed in the 12th century. These guilds controlled
4469-567: The Mexican murex-dyed cloth bore a "disagreeable ... strong fishy smell, which appears to be as lasting as the color itself." Likewise, the ancient Egyptian Papyrus of Anastasi laments: "The hands of the dyer reek like rotting fish". So pervasive was this stench that the Talmud specifically granted women the right to divorce any husband who became a dyer after marriage. In 2021, archaeologists found surviving wool fibers dyed with royal purple in
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4578-528: The Near East and India, fine silk from China and fine white marble destined for the Roman wholesale market from Arabia. For Roman consumers, the purchase of goods from the East was a symbol of social prestige . Medieval England and Europe witnessed a rapid expansion in trade and the rise of a wealthy and powerful merchant class. Blintiff has investigated the early Medieval networks of market towns and suggests that by
4687-728: The Romans did not consider the activities of merchants "respectable". In the ancient cities of the Middle East, where the bazaar was the city's focal point and heartbeat, merchants who worked in bazaar enjoyed high social status and formed part of local elites. In Medieval Western Europe, the Christian church, which closely associated merchants' activities with the sin of usury , criticised the merchant class, strongly influencing attitudes towards them. In Greco-Roman society, merchants typically did not have high social status, though they may have enjoyed great wealth. Umbricius Scauras, for example,
4796-579: The US and in the Russian Empire), while still others made fortunes from exploiting new inventions – selling space on and commodities carried by railways and steamships. In fully planned economies of the 20th century, planners replaced merchants in organising the distribution of goods and services . However, merchants, increasingly labelled with euphemisms such as "industrialists", "businessmen", "entrepreneurs" or "oligarchs" , continue their activities in
4905-422: The above-mentioned economists rejected the theory that labour composed 100% of the exchange value of any commodity. In varying degrees, these economists turned to supply and demand to establish the price of commodities. Marx held that the "price" and the "value" of a commodity were not synonymous. Price of any commodity would vary according to the imbalance of supply to demand at any one period of time. The "value" of
5014-403: The act of shopping came to be seen as a pleasurable pastime or form of entertainment. 16th century Spanish and 17th century English nobles had been enticed into participating in trade by the profitability of colonial expeditions. In the 17th century, members of the nobility in many European countries like France or Spain still disliked engaging in merchant activities, but such attitudes changed in
5123-407: The adventurer and merchant, Marco Polo stimulated interest in the far East in the 13th century. Medieval merchants began to trade in exotic goods imported from distant shores including spices, wine, food, furs, fine cloth (notably silk), glass, jewellery and many other luxury goods . Market towns began to spread across the landscape during the medieval period. Merchant guilds began to form during
5232-417: The ancient Phoenicians as early as 1570 BC. It has been suggested that the name Phoenicia itself means 'land of purple'. The dye was greatly prized in antiquity because the colour did not easily fade, but instead became brighter with weathering and sunlight. It came in various shades, the most prized being that of black-tinted clotted blood. Because it was extremely tedious to make, Tyrian purple
5341-527: The best purple in Africa which was also ranked second only after Tyre's. It was found also at Essaouira ( Morocco ). The Royal purple or Imperial purple was probably used until the time of Augustine of Hippo (354–430) and before the demise of the Roman Empire . Variations in colours of "Tyrian purple" from different snails are related to the presence of indigo dye (blue), 6-bromoindigo (purple), and
5450-442: The biology of land animals. This dye is in contrast to the imitation purple that was commonly produced using cheaper materials than the dyes from the sea snail. In nature, the snails use the secretion as part of their predatory behavior to sedate prey and as an antimicrobial lining on egg masses. The snail also secretes this substance when it is attacked by predators, or physically antagonized by humans (e.g., poked). Therefore,
5559-639: The buyer's mentality and means. For example, milk, eggs, and notebook paper are not differentiated by many customers; for them, the product is fungible and lowest price is the main decisive factor in the purchasing choice. Other customers take into consideration other factors besides price, such as environmental sustainability and animal welfare. To these customers, distinctions such as " organic versus not" or " cage free versus not" count toward differentiating brands of milk or eggs, and percentage of recycled content or Forest Stewardship Council certification count toward differentiating brands of notebook paper. This
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#17327724035715668-443: The commodity markets through a commodity price index . In order to diversify their investments and mitigate the risks associated with inflationary debasement of currencies, pension funds and sovereign wealth funds allocate capital to non-listed assets such as a commodities and commodity-related infrastructure. The inventory of commodities, with low inventories typically leading to more volatile future prices and increasing
5777-404: The commodity, not any quality inherent in a specific producer's product. Commodities exchanges include: Markets for trading commodities can be very efficient , particularly if the division into pools matches demand segments . These markets will quickly respond to changes in supply and demand to find an equilibrium price and quantity. In addition, investors can gain passive exposure to
5886-399: The costs of wear and tear on the instruments of husbandry. David Ricardo , a follower of Adam Smith, modified Smith's approach on this point by alleging that labour alone is the content of the exchange value of any good or service. While maintaining that all exchange value in commodities was derived directly from the hands of the people that made the commodity, Ricardo noted that only part of
5995-401: The development of large trading companies. These developments also triggered innovations such as double-entry book-keeping, commercial accountancy, international banking including access to lines of credit, marine insurance and commercial courier services. These developments are sometimes known as the commercial revolution. Luca Clerici has made a detailed study of Vicenza's food market during
6104-408: The dye can be collected either by "milking" the snails, which is more labor-intensive but is a renewable resource , or by collecting and destructively crushing the snails. David Jacoby remarks that "twelve thousand snails of Murex brandaris yield no more than 1.4 g of pure dye, enough to colour only the trim of a single garment." The dye is collected via the snail-harvesting process, involving
6213-527: The dye may have been produced during the Middle Minoan period in the 20th–18th century BC. Accumulations of crushed murex shells from a hut at the site of Coppa Nevigata in southern Italy may indicate production of purple dye there from at least the 18th century BC. Additional archaeological evidence can be found from samples originating from excavations at the extensive Iron Age copper smelting site of “Slaves’ Hill” (Site 34), which
6322-469: The dye. The good semiconducting properties of the dye originate from strong intermolecular hydrogen bonding that reinforces pi stacking necessary for transport. True Tyrian purple, like most high- chroma pigments , cannot be accurately rendered on a standard RGB computer monitor. Ancient reports are also not entirely consistent, but these swatches give a rough indication of the likely range in which it appeared: _________ _________ The lower one
6431-417: The dyers' workshops, although it is a point of primary importance. After it is taken, the vein [i.e. hypobranchial gland] is extracted, which we have previously spoken of, to which it is requisite to add salt, a sextarius [about 20 fl. oz.] to every hundred pounds of juice. It is sufficient to leave them to steep for a period of three days, and no more, for the fresher they are, the greater virtue there
6540-593: The early 70s. In the 1970s as world economies grew they needed more materials and energy to support expansion leading to increases in prices across the board. This boom came to an end as foreign investments fled as extractive industries became nationalized. The most recent of commodity super cycles began in 2000 as China joined the World Trade Organization . China was also in the beginning of their boom as industry and expansion took off. Workers moved into cities as emerging industries took off and offered
6649-743: The eighteenth century, a new type of manufacturer-merchant was emerging and modern business practices were becoming evident. Many merchants held showcases of goods in their private homes for the benefit of wealthier clients. Samuel Pepys , for example, writing in 1660, describes being invited to the home of a retailer to view a wooden jack. McKendrick, Brewer and Plumb found extensive evidence of eighteenth-century English entrepreneurs and merchants using "modern" marketing techniques, including product differentiation , sales promotion and loss-leader pricing. English industrialists, Josiah Wedgewood (1730–1795) and Matthew Boulton (1728–1809), are often portrayed as pioneers of modern mass-marketing methods. Wedgewood
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#17327724035716758-451: The exchange value of the commodity was paid to the worker who made the commodity. The other part of the value of this particular commodity was labour that was not paid to the worker—unpaid labour. This unpaid labour was retained by the owner of the means of production. In capitalist society, the capitalist owns the means of production and therefore the unpaid labour is retained by the capitalist as rent or as profit. The means of production means
6867-508: The extraction of the hypobranchial gland (located under the mollusk's mantle). This requires advanced knowledge of biology. Murex-based dyeing must take place close to the site from which the snails originate, because the freshness of the material has a significant effect on the results, the colors yielded based on the long process of biochemical, enzymatic and photochemical reactions, and requires reduction and oxidation processes that probably took several days. Many other species worldwide within
6976-556: The family Epitoniidae , seem to also produce a similar substance, although this has not been studied or exploited commercially.) The dog whelk Nucella lapillus , from the North Atlantic, can also be used to produce red-purple and violet dyes. The Phoenicians also made a deep blue-coloured dye, sometimes referred to as royal blue or hyacinth purple , which was made from a closely related species of marine snail. The Phoenicians established an ancillary production facility on
7085-522: The family Muricidae, for example Plicopurpura pansa , from the tropical eastern Pacific, and Plicopurpura patula from the Caribbean zone of the western Atlantic , can also produce a similar substance (which turns into an enduring purple dye when exposed to sunlight) and this ability has sometimes also been historically exploited by local inhabitants in the areas where these snails occur. (Some other predatory gastropods, such as some wentletraps in
7194-525: The fine cloth imports while the Hanseatic League controlled most of the trade in the Baltic Sea. A detailed study of European trade between the thirteenth and fifteenth century demonstrates that the European age of discovery acted as a major driver of change. In 1600, goods travelled relatively short distances: grain 5–10 miles; cattle 40–70 miles; wool and wollen cloth 20–40 miles. However, in
7303-436: The goods were on open display, allowing buyers to evaluate quality directly through visual inspection. Relationships between merchant and consumer were minimal often playing into public concerns about the quality of produce. The Phoenicians became well known amongst contemporaries as "traders in purple" – a reference to their monopoly over the purple dye extracted from the murex shell. The Phoenicians plied their ships across
7412-514: The highest level of exchange, they transferred a more outward-looking mindset and system of values to their commercial-exchange transactions, and also helped to disseminate a more global awareness to broader society and therefore acted as agents of change for local society. Successful, open-minded cosmopolitan merchants began to acquire a more esteemed social position within the political elites. They were often sought as advisors for high-level political agents. The English nabobs belong to this era. By
7521-472: The historical production of the purple dye produced from the carnivorous murex snail , source of the royal purple dye valued higher than gold in the ancient Near East and ancient Mexico. Not only did the people of ancient Mexico use the same methods of production as the Phoenicians, they also valued murex-dyed cloth above all others, as it appeared in codices as the attire of nobility. "Nuttall noted that
7630-534: The imperial court, which restricted its use for the colouring of imperial silks . Later (9th century), a child born to a reigning emperor was said to be porphyrogenitos , " born in the purple ". Some speculate that the dye extracted from the Bolinus brandaris is known as argaman ( ארגמן ) in Biblical Hebrew . Another dye extracted from a related sea snail, Hexaplex trunculus , produced
7739-401: The mackerel, a product of Scaurus, from the shop of Scaurus". Scaurus' fish sauce had a reputation for very high quality across the Mediterranean; its fame travelled as far away as modern southern France. Other notable Roman merchants included Marcus Julius Alexander (16 – 44 CE), Sergius Orata (fl. c. 95 BCE) and Annius Plocamus (1st century CE). In the Roman world, local merchants served
7848-503: The market treats their instances as equivalent or nearly so with no regard to who produced them. Karl Marx described this property as follows: "From the taste of wheat , it is not possible to tell who produced it, a Russian serf , a French peasant or an English capitalist ." Petroleum and copper are examples of commodity goods: their supply and demand are a part of one universal market. Non-commodity items such as stereo systems have many aspects of product differentiation , such as
7957-510: The market. In such standard works as Alfred Marshall 's Principles of Economics (1920) and Léon Walras 's Elements of Pure Economics ([1926] 1954) 'commodity' serves as general term for an economic good or service. The word commodity came into use in English in the 15th century, from the French commodité , "amenity, convenience". Going further back, the French word derives from
8066-657: The modern day widespread belief that purple is a "royal colour". The colour of textiles from this period provides insight into socio-cultural relationships within ancient societies, in addition to providing insights on technological achievements, fashion, social stratification, agriculture and trade connections. Despite their value to archaeological research, textiles are quite rare in the archaeological record. Like any perishable organic material, they are usually subject to rapid decomposition and their preservation over millennia requires exacting conditions to prevent destruction by microorganisms. Tyrian purple may first have been used by
8175-949: The names derived from their former use as the home or place of business of merchants: Commodity The price of a commodity good is typically determined as a function of its market as a whole: well-established physical commodities have actively traded spot and derivative markets. The wide availability of commodities typically leads to smaller profit margins and diminishes the importance of factors (such as brand name ) other than price. Most commodities are raw materials , basic resources, agricultural , or mining products, such as iron ore , sugar , or grains like rice and wheat . Commodities can also be mass-produced unspecialized products such as chemicals and computer memory . Popular commodities include crude oil , corn , gold and Bitcoin . Other definitions of commodity include something useful or valued and an alternative term for an economic good or service available for purchase in
8284-521: The needs of the wealthier landowners. While the local peasantry, who were generally poor, relied on open-air market places to buy and sell produce and wares, major producers such as the great estates were sufficiently attractive for merchants to call directly at their farm-gates. The very wealthy landowners managed their own distribution, which may have involved exporting. Markets were also important centres of social life, and merchants helped to spread news and gossip. The nature of export markets in antiquity
8393-632: The nobility. This trading system supported various levels of pochteca – from very high status merchants through to minor traders who acted as a type of peddler to fill in gaps in the distribution system. The Spanish conquerors commented on the impressive nature of the local and regional markets in the 15th century. The Mexica ( Aztec ) market of Tlatelolco was the largest in all the Americas and said to be superior to those in Europe. In much of Renaissance Europe and even after, merchant trade remained seen as
8502-664: The particular characteristic that it is usually uneconomical to store, and must therefore be consumed as soon as it is produced. Commoditization occurs as a goods or services market loses differentiation across its supply base, often by the diffusion of the intellectual capital necessary to acquire or produce it efficiently. As such, goods that formerly carried premium margins for market participants have become commodities, such as generic pharmaceuticals and DRAM chips . An article in The New York Times cites multivitamin supplements as an example of commoditization;
8611-400: The presumed distastefulness of profiting from "mere" trade rather than from labor or the labor of others as in agriculture and craftsmanship . The Romans defined merchants or traders in a very narrow sense. Merchants were those who bought and sold goods, while landowners who sold their own produce were not classed as merchants. Being a landowner was a "respectable" occupation. On the other hand,
8720-463: The purple dye was first discovered by Heracles (Greek counterpart of the titular god of Tyre, Melqart) while being in Tyre to visit his beloved Tyros , or rather, by his dog, whose mouth was stained purple after biting into a snail on the beach. This story was depicted by Peter Paul Rubens in his painting Hercules' Dog Discovers Purple Dye . According to John Malalas , the incident happened during
8829-437: The red 6,6'-dibromoindigo. Additional changes in colour can be induced by debromination from light exposure (as is the case for Tekhelet ) or by heat processing. The final shade of purple is decided by chromatogram, which can be identified by high performance liquid chromatography analysis in a single measurement: indigotin (IND) and indirubin (INR). The two are found in plant sources such as woad ( Isatis tinctoria L .) and
8938-490: The region. Eighteenth-century merchants who traded in foreign markets developed a network of relationships which crossed national boundaries, religious affiliations, family ties, and gender. The historian, Vannneste, has argued that a new " cosmopolitan merchant mentality" based on trust, reciprocity and a culture of communal support developed and helped to unify the early modern world. Given that these cosmopolitan merchants were embedded within their societies and participated in
9047-532: The reign of the legendary King Phoenix of Tyre , the eponymous progenitor of the Phoenicians, and therefore he was the first ruler to wear Tyrian purple and legislate on its use. Recently, the archaeological discovery of substantial numbers of Murex shells on Crete suggests that the Minoans may have pioneered the extraction of Imperial purple centuries before the Tyrians. Dating from collocated pottery suggests
9156-589: The risk of a " stockout " (inventory exhaustion). According to economist theorists, companies receive a convenience yield by holding inventories of certain commodities. Data on inventories of commodities are not available from one common source, although data is available from various sources. Inventory data on 31 commodities was used in a 2006 study on the relationship between inventories and commodity futures risk premiums. In classical political economy and especially in Karl Marx 's critique of political economy ,
9265-422: The sake of the publicity and kudos generated. Both Wedgewood and Boulton staged expansive showcases of their wares in their private residences or in rented halls. Eighteenth-century American merchants, who had been operating as importers and exporters, began to specialise in either wholesale or retail roles. They tended not to specialise in particular types of merchandise, often trading as general merchants, selling
9374-455: The same commodity produced by the skilled worker. Marx pointed out, however, that in society at large, an average amount of time that was necessary to produce the commodity would arise. This average time necessary to produce the commodity Marx called the "socially necessary labour time". Socially necessary labour time was the proper basis on which to base the "exchange value" of a given commodity. Commodity Super Cycles are periods of time, around
9483-467: The same commodity would be consistent and would reflect the amount of labour value used to produce that commodity. Prior to Marx, economists noted that the problem with using the "quantity of labour" to establish the value of commodities was that the time spent by an unskilled worker would be longer than the time spent on the same commodity by a skilled worker. Thus, under this analysis, the commodity produced by an unskilled worker would be more valuable than
9592-415: The site where the commodity is made, the raw products that are used in the production and the instruments or machines that are used for the production of the commodity. However, not all commodities are reproducible nor were all commodities originally intended to be sold in the market. These priced goods are also treated as commodities, e.g. human labour-power, works of art and natural resources ("earth itself
9701-431: The sixteenth century. He found that there were many different types of merchants operating out of the markets. For example, in the dairy trade, cheese and butter was sold by the members of two craft guilds (i.e., cheesemongers who were shopkeepers) and that of the so-called ‘resellers’ (hucksters selling a wide range of foodstuffs), and by other sellers who were not enrolled in any guild. Cheesemongers’ shops were situated at
9810-419: The spiny dye-murex (originally known as Murex brandaris Linnaeus, 1758), the banded dye-murex Hexaplex trunculus , the rock-shell Stramonita haemastoma , and less commonly a number of other species such as Bolinus cornutus . The dye is an organic compound of bromine (i.e., an organobromine compound ), a class of compounds often found in algae and in some other sea life, but much more rarely found in
9919-472: The tenth to 13th centuries." By contrast, Jacoby finds that there are no mentions of purple fishing or dyeing, nor trade in the colorant in any Western source, even in the Frankish Levant. The European West turned instead to vermilion provided by the insect Kermes vermilio , known as grana , or crimson . In 1909, Harvard anthropologist Zelia Nuttall compiled an intensive comparative study on
10028-484: The term merchant has occasionally been used to refer to a businessperson or someone undertaking activities (commercial or industrial) for the purpose of generating profit, cash flow, sales, and revenue using a combination of human, financial, intellectual and physical capital with a view to fueling economic development and growth. The English term, merchant comes from the Middle English, marchant , which
10137-546: The thirteenth century, European businesses became more permanent and were able to maintain sedentary merchants and a system of agents. Merchants specialised in financing, organisation and transport while agents were domiciled overseas and acted on behalf of a principal. These arrangements first appeared on the route from Italy to the Levant, but by the end of the thirteenth century merchant colonies could be found from Paris, London, Bruges, Seville, Barcelona and Montpellier. Over time these partnerships became more commonplace and led to
10246-594: The town hall and were very lucrative. Resellers and direct sellers increased the number of sellers, thus increasing competition, to the benefit of consumers. Direct sellers, who brought produce from the surrounding countryside, sold their wares through the central market place and priced their goods at considerably lower rates than cheesemongers. From 1300 through to the 1800s a large number of European chartered and merchant companies were established to exploit international trading opportunities. The Company of Merchant Adventurers of London , chartered in 1407, controlled most of
10355-463: The trappings of culture. The Phoenicians' extensive trade networks necessitated considerable book-keeping and correspondence. In around 1500 BCE, the Phoenicians developed a script which was much easier to learn than the pictographic systems used in ancient Egypt and Mesopotamia. Phoenician traders and merchants were largely responsible for spreading their alphabet around the region. Phoenician inscriptions have been found in archaeological sites at
10464-402: The two murex dyes has not yet been successfully reconstructed; this special "blackish clotted blood" colour, which was prized above all others, is believed to be achieved by double-dipping the cloth, once in the indigo dye of H. trunculus and once in the purple-red dye of B. brandaris . The Roman mythographer Julius Pollux , writing in the 2nd century AD, recounts that
10573-405: The veins. About the tenth day, generally, the whole contents of the cauldron are in a liquefied state, upon which a fleece, from which the grease has been cleansed, is plunged into it by way of making trial; but until such time as the colour is found to satisfy the wishes of those preparing it, the liquor is still kept on the boil. The tint that inclines to red is looked upon as inferior to that which
10682-646: The way that trade was to be conducted and codified rules governing the conditions of trade. Rules established by merchant guilds were often incorporated into the charters granted to market towns . In the early 12th century, a confederation of merchant guilds, formed out the German cities of Lübeck and Hamburg, known as "The Hanseatic League " came to dominate trade around the Baltic Sea . By the 13th and 14th centuries, merchant guilds had sufficient resources to have erected guild halls in many major market towns. During
10791-621: The years following the opening up of Asia and the discovery of the New World, goods were imported from very long distances: calico cloth from India, porcelain, silk and tea from China, spices from India and South-East Asia and tobacco, sugar, rum and coffee from the New World. In Mesoamerica, a tiered system of traders developed independently. The local markets, where people purchased their daily needs were known as tianguis while pochteca referred to long-distance, professional merchants traders who obtained rare goods and luxury items desired by
10900-568: Was a manufacturer and trader of garum in Pompeii, circa 35 C.E. His villa, situated in one of the wealthier districts of Pompeii, was very large and ornately decorated in a show of substantial personal wealth. Mosaic patterns in the floor of his atrium were decorated with images of amphorae bearing his personal brand and inscribed with quality claims. One of the inscriptions on the mosaic amphora reads "G(ari) F(los) SCO[m]/ SCAURI/ EX OFFI[ci]/NA SCAU/RI" which translates as "The flower of garum, made of
11009-542: Was a prolific pamphleteer. His many publications include titles devoted to trade, including: Trade of Britain Stated (1707); Trade of Scotland with France (1713); The Trade to India Critically and Calmly Considered (1720) and A Plan of the English Commerce (1731); all pamphlets that became highly popular with contemporary merchants and business houses. Armenians operated as a prominent trade nation during
11118-419: Was able to generate higher overall profits. Similarly, one of Wedgewood's contemporaries, Matthew Boulton, pioneered early mass-production techniques and product differentiation at his Soho Manufactory in the 1760s. He also practiced planned obsolescence and understood the importance of " celebrity marketing " – that is supplying the nobility, often at prices below cost – and of obtaining royal patronage , for
11227-511: Was accelerated on the back of widespread U.S. industrialization and World War 1. In 1917 commodity prices peaked and then entered a downtrend to the 1930s. As war erupted in Europe in the late 1930s and eventually including the U.S. the world saw a new cycle begin. Countries were not just preparing for war but also the Aftermath of World War II as lots of Europe and Asia faced heavy rebuilding. This cycle eventually peaked in 1951 and faded away in
11336-480: Was continued by the Greeks and Romans until 1453 AD, with the fall of Constantinople . In the same way as the modern-day Latin alphabet of Phoenician origin, Phoenician purple pigment was spread through the unique Phoenician trading empire. The pigment was expensive and time-consuming to produce, and items colored with it became associated with power and wealth. This popular idea of purple being elite contributes to
11445-570: Was expensive: the 4th century BC historian Theopompus reported, "Purple for dyes fetched its weight in silver at Colophon " in Asia Minor . The expense meant that purple-dyed textiles became status symbols , whose use was restricted by sumptuary laws . The most senior Roman magistrates wore a toga praetexta , a white toga edged in Tyrian purple. The even more sumptuous toga picta , solid Tyrian purple with gold thread edging,
11554-493: Was known to have used marketing techniques such as direct mail , travelling salesmen and catalogues in the eighteenth century. Wedgewood also carried out serious investigations into the fixed and variable costs of production and recognised that increased production would lead to lower unit-costs. He also inferred that selling at lower prices would lead to higher demand and recognised the value of achieving scale economies in production. By cutting costs and lowering prices, Wedgewood
11663-501: Was necessary. An incomplete ancient recipe for Tyrian purple recorded by Pliny the Elder was also consulted. By altering the percentage of sea salt in the dye vat and adding potash , he was able to successfully dye wool a deep purple colour. Recent research in organic electronics has shown that Tyrian purple is an ambipolar organic semiconductor . Transistors and circuits based on this material can be produced from sublimed thin-films of
11772-469: Was obtained and the process of extracting the tissue that produced the dye. Pliny the Elder described the production of Tyrian purple in his Natural History : The most favourable season for taking these [shellfish] is after the rising of the Dog-star , or else before spring; for when they have once discharged their waxy secretion, their juices have no consistency: this, however, is a fact unknown in
11881-542: Was worn by generals celebrating a Roman triumph . By the fourth century AD, sumptuary laws in Rome had been tightened so much that only the Roman emperor was permitted to wear Tyrian purple. As a result, 'purple' is sometimes used as a metonym for the office (e.g. the phrase 'donned the purple' means 'became emperor'). The production of Tyrian purple was tightly controlled in the succeeding Byzantine Empire and subsidized by
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