Based on a vast array of sources, the author describes how in a feudal system, on the eve of the colonial period, the output of various products was transformed from household village crafts to production for various markets, with the beginning of wage labour and dependence on merchant capital. The author also examines patterns of trade, rural and urban markets, merchant-state nexus, increasing engagement of the feudal class in trade and finally the new forms and volume of trade and commodity production with the arrival of European merchants.
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