It greatly reduces the cost of transporting those resources TO the plant. This is especially important for companies that own the plant AND the resources already. Petroleum is a prime example. It's MUCH cheaper to refine it when you take it out of the ground. Bauxite is another example; you manufacture aluminum.
Also, consider this: the less spent on the transport of resources, the less it will cost the consumer.
2006-09-28 17:43:58
·
answer #1
·
answered by cyanne2ak 7
·
1⤊
0⤋
Moving materials costs money. You have to pay people to move it, and pay for fuel.
Keeping the manufacturing plant close to the resources keeps cost down. This is especially true of industries which produce products from perishable resources such as agriculture. Milk, for example, must be processed quickly to avoid spoilage.
2006-09-29 00:43:39
·
answer #2
·
answered by Privratnik 5
·
1⤊
0⤋
Off you go then Meg!
Transportation is obviously the issue. Think about volume of resources transported; how much iron ore is needed to produce one ton of steel? for example. The noise, mess, danger and cost of large-scale transportation of bulky resources compared to only needing to move the refined finished product for long distances. Efficiency.
Bring back river transport!
2006-09-29 00:38:36
·
answer #3
·
answered by Bart S 7
·
1⤊
0⤋
The answer is shipping costs. Those industries that the raw materials are considerably heavier or bulkier than the finished goods
an example would be the steel industry!
2006-09-29 00:43:39
·
answer #4
·
answered by Anarchy99 7
·
1⤊
0⤋
Lazyness. Who wants to move stuff? Just build the plant next to the mine. Better yet, build the workers houses there too.
Industries? The one's with really heavy stuff. Ore.
For example, oil wouldn't matter as much, since they can pipe it.
2006-09-29 00:36:22
·
answer #5
·
answered by ? 1
·
1⤊
0⤋
Transportation costs are reduced. Also safety concerns, if the natural resoucres could be dangerous to move.
2006-09-29 00:38:20
·
answer #6
·
answered by treasureisland85 3
·
1⤊
0⤋
it would promote in preparation, preservation, protection for better ecology & ergonomics. also will help in enhancing the living condition in the remote areas which will also reduce the urban congestion
2006-09-29 00:53:17
·
answer #7
·
answered by suneash 1
·
1⤊
0⤋
Low freight cost.
2006-09-29 00:35:01
·
answer #8
·
answered by carpetbagger 4
·
1⤊
0⤋