Within the ____ system a close relationship developed between the town and the countryside.

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Within the proto-industrial system, a close relationship developed between the town and the countryside. The period of industrialization not based on the factory system is known as proto-industrialization. There was large-scale industrial output for the foreign market before the arrival of factories. In the seventeenth and eighteenth centuries, merchants from European cities began to move to the countryside. They lend money to peasants and artisans and convince them to produce for an international market. These peasants could stay in the countryside and farm their little plots while working for the merchants. Their income from proto-industrial output supplemented their declining agricultural income. It also enabled them to use their family's labour resources better. Thus, this arrangement formed an intimate interaction between the town and the countryside. Though the merchants were situated in towns, most of the work was done in the countryside.

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