AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Trade guilds were associations of producers in European towns that trained craftspeople, controlled production, regulated prices, restricted entry of new traders, and held monopoly rights granted by rulers.
Their dominance made it difficult for new merchants to set up or expand businesses in towns. So merchants turned to the countryside, where poor peasants and artisans were willing to work for them without guild restrictions.
Source: The Age of Industrialisation, Proto-industrialisation section
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