Where does a weaver produce clothes in a putting-out system?

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Detailed Solution

The weaver generally works from the confines of his/her home. The professional arrangement between a merchant and a weaver is informal. This arrangement between a merchant and a weaver is termed a putting-out system. In this putting-out system, the merchant supplies the inputs to the weaver and the weaver is required to produce the cloth and give it back to the merchant as a finished product. This putting-out system puts the weaver in a disadvantageous position. This is because the weaver is dependent on the merchant for receiving the input as well as for buying their finished products. The weaver gets a minimal amount of their hard work.

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