Dramatic literature often recapitulates the history of a culture( in that 因为 )it(指 Dramatic literature) takes (宾语是后面的 the important events)as its subject matter (the important events 做 takes 的宾语,考虑整个句子平衡及与后面的定语从句靠近所以后置)(that have shaped and guided the culture定语从句,修饰 the important events).
译文:戏剧文学常常再现某种文化的历史,原因在于它将形成和引导这种文化的重要事件作为它的主题材料.