Reasons why firm is located near the raw material, give answers in English

Firms are often located near raw materials for several key reasons:

• Reduced Transportation Costs: This is the primary reason. Transporting heavy, bulky, or perishable raw materials over long distances can be very expensive. Locating near the source significantly cuts down on these costs.
• Perishability of Raw Materials: If raw materials spoil quickly (e.g., fresh produce, milk), processing them immediately near the source is crucial to prevent spoilage and waste.
• Weight-Losing Processes: For industries where the raw material loses a significant amount of weight or bulk during processing (e.g., timber to lumber, ore to refined metal), it's more economical to transport the lighter, finished product than the heavier raw material.
• Ensured Supply and Efficiency: Being close to the source can guarantee a more consistent and timely supply of raw materials, reducing delays and improving overall production efficiency.