BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Nearness to the sources of raw materials would reduce the cost of production of the industry. For most of the major industries, the cost of raw materials form the bulk of the total cost. Therefore, most of the agro-based and forest-based industries are located in the vicinity of the sources of raw material supply.

Detailed explanation-2: -Similarly, the locations of pulp industry, copper smelting and pig iron industries are located near their raw materials. In iron and steel industries, iron ore and coal both are weight-losing raw materials. Therefore, an optimum location for iron and steel industries should be near raw material sources.

Detailed explanation-3: -Large quantities of raw materials are required for the production of finished goods by industry. As a result, factories should be located close to the source of raw materials in order to save shipping costs.

Detailed explanation-4: -The finished goods should reach the market at the end of the process of manufacturing. Thus nearness to the market is an add-on quality in the process of selecting a location for industry. industries are established near rivers, canals, and lakes, because of this reason.

Detailed explanation-5: -Proximity to materials For some products, being close to the raw materials is extremely important for saving money. For other products, it often makes more sense to be located close to the market and transport the raw materials further.