A.

Primitive stage

In ancient times people lived in caves and fulfilled their basic needs of food and clothes through
hunting the wild animals in forest. They were not civilized and hovered here and there. Their needs
were also limited. In this stage people produced goods themselves to satisfy their own basic needs.
They survived through hunting and gathering foods. There was no market. There was thus no
exchange of goods. They were independent. The stage of further development of human from
absence of culture and civilization is called pastoral stage. This stage is basically called the age of
keeping animals. Animals were used for milk, meat, wool, skin and so on beyond food and clothes.
The wants went on increasing and development also started. The wants of people increased with
development of society. There was both advancement and civilization of market. Self sufficiency
stage didn’t remain with advancement. They started to exchange the goods they produced with
goods that other people produced to fulfil other requirements. This is called barter system. There
was exchange of goods and services with goods and services.

B. Agriculture stage

Slowly, human beings became a little bit civilized and got idea about farming and keeping cattle. This
stage was the major stage of development of industry. In this stage people started to do agriculture
and live in river banks. They started to cultivate crops and domesticate the animals. With a denser
population remaining permanently in fixed abodes, new relations spring up among men, new duties,
new arts, and new possibilities of civilization. Man developed the art of cultivation of land and started
living in a fixed place. Men built houses and started cultivating land. This marked the beginning of the
growth of collective living which led to the emergence of communities and villages.The true form of
commercial activities started from this stage where people started producing more than their families
required and the surplus produce was exchanged

Handicraft stage: The handicraft stage was the beginning stage of industrial evolution. As
the needs of human beings went on increasing people started to produce products of their
convenience. They used locally available raw materials to produce goods. This gave birth to
handicrafts. The goods they could not produce were exchanged with the goods they
produced. They used simple handmade tools so; the production was at the minimal level.

2. The Guild System: A guild indicates an organized group of traders or

craftsmen. Guild is the kind of organization in which members
are applied in same occupation, or Guild is the organization
of labours that were related with special occupation. Guilds
of cobblers, blacksmiths, goldsmiths, tailors, bakers, cloth
makers etc. was found in that time. All of them were
reserved in their interest.
Characteristics of Guild System:
Some characteristics of Guild system are given below:
 a) The guilds themselves were a kind of combination of trade
union, professional organization and mutual benefit society.
b) The guild regulated not only the quantity and quality of the
goods to be produced but also their prices and the tools that
could be used.
c) The guilds were concerned not only with the economic
interests of their member, but they also discharged social,
political and religious functions.
d) The labors of the guild were not unknown to each other.
e) The social relation among the members was established on
the basis of production process.
f) The machines were hand controlled.
g) Comparatively the laborers were less skilled.

In that time the Guild was two types:

I. Merchant Guild: The merchant guild was the association of merchants who
were engaged in regulating business and standardizing their products. Basically
merchant guilds were the combination of merchants; it
worked for the protection the interest of the merchants. The
people who were engaged in business of goods and services
called merchants
II. The Craft Guild: the craft guild was the association of skilled craftsmen who
tried to maintain the quality and quantity of production. The craft guilds were
the more important of the two bringing together the men
engaged in the same occupation. So there were guilds of
cobblers, blacksmiths, goldsmiths, tailors, bakers, cloth
makers etc. They looked primarily after the interests of the
crafts.
Decay of the Guild System:
The 16th century onwards begun to take place until they finally
brought about the downfall of the Guild. The exact time is not
determined. The causes of the decay of the guild are discussed
below:
a) Due to bad relation between merchant and craft guild, urban
authority compelled to take-over the activities of the Guild.
As a result, the power of guild reduced.
b) Monopolistic attitude in production and sell created a
dissatisfactory movement in other parties. Finally, govt.
ordered the court to observe the activities of guild.
c) Due to expansion of market of produced goods, guild
gradually depends on exporters. For this reason, guild
became limited to the exporters but not met the demand of
market.
d) In early 16th century, demand increases of new product. For
producing new products, foreign raw materials were
essential that was impossible to supply by guild.
e) The other causes behind decay of gilds system were-
 The opening of the commercial way
 The discovery of America.
 Discovery of new science and technology.
 Discovery of new source of raw materials.
 Coal, water and electricity used in machineries.