What affect does the setting of the bag-end have on the plot in the beginning of the story of the hobbit?

Bilbo’s adventure in “The Hobbit” begins and ends in his hometown, the Shire. This area of Middle Earth conveys the comforts of home with its charming rustic architecture, pleasant climate, fertile land and friendly neighbors. While the pastoral land seems like a utopia for those who like the status quo, it’s also a symbol of an insulated and withdrawn life, according to the Houghton Mifflin Harcourt's "The Hobbit: An Educator's Guide." While Bilbo feels comfortable and secure with his life at Bag End in the Shire, he knows that there’s more to the world than his quiet existence.

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faithful servants eumaeus and philaetius:

his ragged vest then drawn aside disclosed the sign conspicuous, and the scar exposed: eager they view'd, with joy they stood amazed with tearful eyes o'er all their master gazed:

these servants know ulysses by the scar he got when he was a child - so when he showed them the mark, they immediately knew this is truly their master and they hugged him, finally starting to believe his words.