Explain why the capitalist system developed in Europe.
1 answer
The capitalist system developed in Europe due to a combination of factors, including the rise of mercantilism, the growth of the middle class, the development of banking and credit systems, and the emergence of a global market. Mercantilism encouraged the accumulation of wealth through trade and the development of colonies, which provided a source of raw materials and markets for finished goods. The growth of the middle class created a demand for consumer goods, which spurred the development of manufacturing and industry. Banking and credit systems allowed for the accumulation of capital and investment in businesses. Finally, the emergence of a global market allowed for the exchange of goods and services between different countries, creating a more efficient and profitable system of production and distribution.