What was the 'Putting-out System'?

The 'Putting-out System' refers to a method of producing goods in homes rather than in centralized factories. This system emerged prior to the Industrial Revolution and involved merchants supplying raw materials to workers, who would then process or manufacture the goods in their own homes. Once completed, the workers would return the finished products to the merchants, who would sell them in larger markets.

This decentralized approach allowed for greater flexibility in production and enabled people to work from home, which was particularly advantageous in rural areas where access to factories was limited. Additionally, it set the stage for later developments in industrial production by highlighting the division of labor and the relationship between producers and merchants. This contrasts with the other options, which represent later developments in industrialization, such as factory-based production methods, assembly lines, and structured corporate organizations that came into prominence after the initial phase of the Putting-out System.