Actually, it is embroidery (chainstitch embroidery to be exact) as named after the man who invented the machine that produces it around the mid 1800's. For more information see: http://www.dhub.org/object/258311,embroidery
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An embroidery hoop, colored floss, needles, scissors and a cloth or canvas.
Embroidery scissors for embroidery are a necessary piece of equipment for anyone who appreciates the craft. Trim threads precisely and closely as you complete each piece or group of stitches. In order to quickly trim thread as close to the embroidered canvas as possible, embroidery scissors must have sharp points.
A Tambour; it is used to stretch material in embroidery.
Some historians believe embroidery originated in the Orient and Middle East at about the same time. Chinese embroidery dates back to at least 6,000 BC. Stitched horizontal rows of ivory beads were discovered in 1964 on the fossilized remains of a cro-magnon man, estimated to be more than 30,000 years old.