where are goods produced in the domestic system
Factory system Much manufacturing in the 18th century was carried out in homes under the domestic or putting-out system, especially the weaving of cloth and spinning of thread and yarn, often with just a single loom or spinning wheel. As these devices were mechanized, machine made goods were able to underprice the cottagers, leaving them unable to earn enough to make their effort worthwhile. Other products such as nails had long been produced in factory workshops, increasingly diversified using the division of labour to increase the efficiency of the system.
Market economy Market economies range from minimally regulated “free market” and laissez-faire systems - where state activity is restricted to providing public goods and services and safeguarding private ownership[3] - to interventionist forms where the government plays an active role in correcting market failures and promoting social welfare. State-directed or dirigist economies are those where the state plays a directive role in guiding the overall development of the market through industrial policies or indicative planning — which guides but does not substitute the market for economic planning — a form sometimes referred to as a mixed economy.[4][5][6]