Question
How is putting out system advantageous and disadvantageous for the weavers?

Answer

For the weavers, this arrangement seemingly has two advantages.
  1. The weavers do not have to spend their money on purchase of yarn.
  2. The problem of selling the finished cloth is taken care of.
For the weavers, this arrangement has following disadvantages.
  1. They have to depend on the merchants both for raw materials and markets.
  2. Under this system the merchants have a lot of power. They give orders for what is to be made and they pay a very low price for making the cloth.
  3. The weavers have no way of knowing who they are making the cloth for or at what price it will be sold.

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