Raw Materials


Raw Materials
A material or substance used in the primary production or manufacturing of a good. Raw materials are often natural resources such as oil, iron and wood. Before being used in the manufacturing process raw materials often are altered to be used in different processes. Raw materials are often referred to as commodities, which are bought and sold on commodities exchanges around the world.

Raw materials are sold in what is called the factor market. This is because raw materials are factors of production along with labor and capital. Raw materials are so important to the production process that the success of a country's economy can be determined by the amount of natural resources the country has within its own borders. A country that has abundant natural resources does not need to import as many raw materials, and has an opportunity to export the materials to other countries.


Investment dictionary. . 2012.

Look at other dictionaries:

  • raw materials — index commodities Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • raw materials — UK US noun [plural] ★ substances such as coal or iron that are in their natural state before being changed by chemical processes Thesaurus: natural worldsynonym environmental issueshyponym …   Useful english dictionary

  • raw materials — *Factors of production, typically natural resources, that have not yet been subjected to a *manufacturing process. During a manufacturing process, raw materials are normally referred to as *work in process until their conversion into *finished… …   Auditor's dictionary

  • raw materials — raw ma terials noun plural * substances such as coal or iron that are in their natural state before being processed or made into something …   Usage of the words and phrases in modern English

  • raw materials — noun (plural) materials such as coal, oil etc, in their natural state, before being treated in order to make things …   Longman dictionary of contemporary English

  • raw materials — Direct materials used in a production process, which are at a low level of completion compared to the final product or cost unit. Examples include steel plate, wood, and chemicals …   Accounting dictionary

  • raw materials — Direct materials used in a production process, which are at a low level of completion compared to the final product or cost unit Examples include steel plate, wood, and chemicals …   Big dictionary of business and management

  • raw materials — /rɔ: mə tɪəriəlz/ plural noun basic materials which have to be treated or processed in some way before they can be used, e.g. wood, iron ore or crude petroleum …   Marketing dictionary in english

  • raw materials — /rɔ: mə tɪəriəlz/ plural noun basic materials which have to be treated or processed in some way before they can be used, e.g. wood, iron ore or crude petroleum …   Dictionary of banking and finance

  • raw materials —   unprocessed inputs to an industrial process …   Geography glossary


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.