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Capitalism came into full effect when the Gild System collapsed. With this came two systems that characterized the rise of capitalism
The factory system - Rich merchants collected equipment in a factory (warehouse), outsourced raw materials, hired workers for pay only and they ignored production modules, thus making the compete rather than co - operate
Putting - out System - Merchants rented the needed equipment to peasant families, sell them raw materials, then purchase the finished goods.
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