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What is the putting-out arrangement?

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Answer
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Hint: Weaving is a textile manufacturing technique in which two sets of yarns or threads are interlaced at right angles to form a fabric or cloth. Knitting, crocheting, felting, and braiding or plaiting are some of the other techniques. A merchant is someone who trades in commodities made by other people, particularly with foreign countries.

Complete answer:
The putting-out system is an old method of buying and selling domestically produced goods. It's also known as the cottage industry, and the weaver's entire family is usually involved in the process.

The weaver and the merchant are both parties involved in the putting-out system.
A. This system has a number of advantages and disadvantages for weavers. Let us first consider the benefits it provides to weavers:
B. The weavers are given a pre-determined estimate of the type of cloth they must weave as well as the quantity required. This saves a lot of extra time and effort.
C. By supplying the yarn to the weavers, the money that would have been spent on purchasing the raw material is saved.
D. Weavers also save on transportation and sales-related costs for the finished products.
E. Workers can work at their own pace, and family members can lend a helping hand.

The system, however, has some drawbacks for weavers.
1. Weavers are frequently exploited and underpaid for their labour.
2. The merchants wield a great deal of power because the weavers rely on them for raw materials.
3. The weavers are unaware of their legal rights and the true value of their labour.

Thus, The cloth merchants supply the raw material to the weavers and receive the finished product under the putting-out arrangement.

Note: The domestic system was also known as putting out the system. The merchant subcontracts work to the weavers in this system. This system served as a forerunner to Europe's Industrial Revolution.