HISA04H3 Chapter Chapter 2: Themes In World History Reading Notes 2
Document Summary
Capitalism emerged in 18th century britain when the demand for industrial production was sparked by increased consumption and market proliferation. It was in 18th century britain that thinkers such as adam smith laid down the foundation for a capitalist way of thinking about the economy. Capitalist ideas were put forth such as a division of labor, competition, the free operation of the market, and production for profit. Merchant capitalism in the 17th century paved the way for the emergence of capitalist ideas in. Merchant capitalism expanded markets on an international level and created new ways of investing in company shares and various voyages. The problem with merchant capitalism was that it did not involve competition as most trading companies tended to monopolize the industry and it did not play a huge role in fueling the economy. Capitalism in the true sense of the word emerged in 16th century england.
