Question

What happens in the putting-out system?

• A. Merchant supplies the raw material
• B. Receives the finished product
• C. Both A and B
• D. None of these

Answer 1

The correct option is C Both A and B

The arrangement between the merchant and the weavers is an example of a putting-out system, whereby the merchant supplies the raw material and receives the finished product. The merchants purchase the raw material and give instructions to the weavers about the kind of cloth that is to be made. This arrangement is prevalent in the weaving industry in most regions of India.