Question

Write a note on capitalism.

With the discovery of new sea routes, began a new era of trade between

Europe and Asia. Many traders came forward to trade with Eastern countries through

the sea routes. It was not easy to carry out trade single handedly and hence many traders

came together and started trade. Thus there was rise of many Trading Companies. Trade

with Oriental Countries was very profitable and responsible for economic prosperity.

Hence European rulers started giving military protection and trade concessions to these

trading companies. This led to accumulation of wealth in Europe. This property was

used in the form of capital for trade and commerce which led to rise of capitalist

economic system in Europe.​

Answer 1

Explanation:

Capitalism is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on supply and demand in the general market—known as a market economy—rather than through central planning—known as a planned economy or command economy.

With the discovery of new sea routes, began a new era of trade between Europe and Asia. ... Thus, there was rise of many Trading Companies. Trade with Oriental countries was very profitable and responsible for economic prosperity.