1. What is putting- out system?
Ans : The putting-out system is a means of subcontracting work. In putting-out, work is contracted by a central agent to subcontractors who complete the work in their own facilities. The arrangement between the merchant and the weavers  is an example of  putting- out system. Here  the merchant supplies the raw material and receives the finished product. It is prevalent in the weaving industry in most regions of India

2. What are the factors behind Erode being the world’s largest cloth market?
Ans : The factors that make Erode the world’s largest cloth market are as follows:
A large variety of cloth is sold in this market.
Cloth made by weavers in the villages around is also brought here for sale.
Offices  of cloth merchants are situated around the market .
Traders from many south Indian towns also attended market .

3.What are the advantages of Putting-out system for the weavers?
Ans :  For the weavers, this arrangement seemingly has two advantages.
The weavers do not have to spend their money on purchase of yarn.
 Also, the problem of selling the finished cloth is taken care of.

4.What are the disadvantages of Putting-out system?
Ans : The merchant distributes both work and yarn among the weavers based on the orders he has received for cloth. This dependence on the merchants both for raw materials and markets means that 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. The weavers have no way of knowing who they are making the cloth for or at what price it will be sold.

5. How the markets work more in favour of the merchants than the weavers?
Ans :The merchant distributes both work and yarn among the weavers based on the orders he has received for cloth. This dependence on the merchants both for raw materials and  arkets means that 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. At the cloth market, the merchants sell the cloth to the garment factories. In this way, the market works more in favour of the
merchants.

6. How Weaver’s cooperatives reduced  the role of the merchant?
Ans :Weaver’s cooperatives  was one of  the  way to reduce the dependence on the merchant and to
earn a higher income for the weavers. In a cooperative, people with common interests come together and work for their mutual benefit. In a weaver’s cooperative, the weavers form a group and take up certain activities collectively. They procure yarn from the yarn dealer and distribute it among the weavers. The cooperative also does the marketing. So, the role of the merchant
is reduced, and weavers get a fair price on the cloth.

7. What are the reasons behind the dependence of cotton cultivators on traders?
Ans : Cotton cultivators are dependent on traders due to the following reasons:
•    Cultivation of cotton requires high level of inputs such as fertilizers and pesticides and the farmers.
•    Cultivation of cotton involves heavy expenses for which cultivators have to borrow money from traders.

8.Why  the poor are exploited in the market? What are ways to overcome these?
Ans :  The poor have to depend on the rich and the powerful for various things. They have to depend for loans, for raw materials and marketing of their goods, and most often for
employment . Because of this dependence, the poor are exploited in the market.
There are ways to overcome these such as forming cooperatives of producers and ensuring that laws are followed strictly.

9. What are the conditions faced by exporters in the market? What is their response to these conditions?
Ans : The conditions faced by exporters in the market are as follows:
•    Business conducted by foreign buyers on their own terms.
•    High standards for quality of production and timely delivery.
•    Strict action against any defect or delay in delivery of products.
The exporters respond by paying low wages to workers in order to cut costs and maximize profits

10. What kind of work is done by women employed in a garment factory? What is the reason behind low wages paid to women?
Ans :  Women are employed as helpers for thread cutting, buttoning, ironing and packaging in the garment factory. They are paid low wages because they are not considered as skilled workers; it is considered that women can be trained only in menial jobs.

11.What is the procedure of trading of cotton in the market?
Ans :  Cotton is traded in the market in the following ways:
•    Traders sell cotton at the cotton market.
•    Ginning mills buy the cotton.
•    Ginning mills remove the seeds and press the cotton into bales.
•    Spinning mills spin cotton into yarn.
•    Spinning mills sell the yarn to yarn dealers.

12.What is a power loom?
Ans :  A power loom is a mechanized device used by weavers to weave yarn into cloth. Weavers work with members of their families as these looms require more than one person to operate them.