. Merchants supplied money to peasants and artisans, persuading them to produce for an international market. . Demand for goods increased since the European powers had acquired colonies and sold their goods in these colonies. . But merchants could not expand production within towns because the urban crafts and trade guilds were very powerful. . Rulers granted different guilds the monopoly rights to produce and trade in specific products. . It was therefore difficult for new merchants to set up business in towns. So they turned to countryside.