[[1]] is an arrangement between the merchant and the weaver, whereby the merchant supplies the raw material and receives the finished product.

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

The putting-out system is an arrangement between the merchant and the weaver whereby the merchant supplies the raw material and receives the finished product.
The putting-out system, in which the merchant delivers the raw materials and receives the final product, is represented by the arrangement between the merchant and the weavers. The merchants purchase the raw ingredients and provide the weaver's instructions on the kind of fabric that should be produced. In the weaving industry in India, this arrangement is typical. This arrangement offers two advantages to the weavers: It is unnecessary for them to invest in yarn or to consider selling the finished product. The following drawbacks affect weavers: Merchants become more emphatic as their reliance on markets and raw commodities increases. For weaving the fabric, weavers receive low wages.

Watch 3-min video & get full concept clarity