(i) Impact on cottagers and peasants : After the disappearing of open field system cottagers and poor peasants ‘who had earlier depended on common lands for their survival, gathering their firewood, berries, vegetables, hay and straw, had to now look for alternative sources of income. Many had tiny plots of land which could not provide work for all members of the household. So when merchants cam around and offered advances to produce good; for them, peasant households eagerly agreed. By working for the merchants, they could remain in the countryside and continue to cultivate their small plots. Income from proto-industrial production supplemented their shrinking income from cultivation. It also allowed them a fuller use of their family labour resources. (ii) Closed relationship between countryside and towns : Within this system a close relationship developed between the town and the countryside. Merchants were based in towns but the work was done mostly in the countryside. (iii) Role of merchants : The whole system of production was controlled by merchants and the goods were produced by a vast number of producers working within their family farms, not in factories At each stage of production 20 to 25 workers were employed by each merchant. (iv) Market : With the expansion of world trade and the acquistion of colonies in different parts of the world, the demand for goods began growing. So the Merchants were producing these goods for international market. (v) Not factories : The goods were no: produced in factories by the cotta cottagers and Hie peasants and their families.