Even before factories began operating in England, there was large-scale industrial production for international markets based on cottage industries, referred to as proto-industrialization by historians. Merchants would provide money and raw materials to peasants and artisans in the countryside to produce goods that were exported internationally. This helped develop close economic ties between towns and the countryside. Eventually, factories replaced cottage industries, allowing for closer supervision of production and more efficient use of machinery. However, hand production and small-scale industries remained important parts of the industrial economy.