Electromagnetic waves produced by a dipole antenna create varying amplitudes in space, resembling a toroidal shape in representation. When these waves reach a receiver, only a small portion of the wavefront is captured, and interference can occur from reflections. The main signal's amplitude must be significantly larger than any reflected signals for effective demodulation. Modulation and demodulation are handled by dedicated circuits in the transmitter and receiver, respectively, and antennas do not differentiate between modulation types. Understanding the principles of modulation, especially the differences between AM and FM, is crucial for effective signal decoding.