Neolithic Trade Networks People who lived during the Neolithic period weren’t just farmers. They were craftspeople, spiritual leaders, and traders. People specialized in different tasks and became experts in their fields. They used the natural resources around them to make better weapons, tools, clothing, homes, and pottery. The improvements in farming led to permanent settlements. These villages needed an organized labor force. People created governments to control the food and water supplies. They also raised armies to defend themselves from attacks. People began to use domesticated animals to travel farther so they could trade with other villages. Domesticated animals such as camels, donkeys, and eventually horses allowed traders to travel hundreds of miles. They encountered new people, with different cultures and natural resources. They were able to trade for items that they couldn’t produce themselves. This contact had long-lasting effects. How did the growth of trade networks affect Neolithic people? Trade networks reduced contact between Neolithic villages. Trade networks resulted in the widespread exchange of ideas and resources. Trade networks were the most important cause of the domestication of plants and animals. Trade networks led to the creation of the first permanent settlements.