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Raw materials can be explained as substance or material used in the manufacturing or primary production of goods. Generally, raw materials are natural resources like oil, wood, and iron. Raw materials are often altered for use in various processes prior to being used in the manufacturing process. Raw materials are also referred to as commodities, which are purchased and sold on commodities exchanges throughout the world.
As stated by Investopedia, raw materials are sold in what is known as the factor market. This is due to the reason of raw materials being factors of production in addition to labor and capital. Raw materials play an important role in the production process to a great extent as the success of the economy of a