What does domestic system mean?

The domestic system, also known as the putting-out system, refers to a pre-industrial method of production where goods were manufactured in individual homes rather than centralized factories. This system typically involved merchants providing raw materials to rural families, who would then process these materials into finished products. The domestic system allowed for flexible work hours and localized production, but it was gradually replaced by the factory system during the Industrial Revolution, which centralized production and increased efficiency.