The Concept of Merchant Capitalism

These things were regulated by the verbalise for the benefit of the state. Both the businesspeople and the governments saw benefits of the arrangement, at least until the seventeenth century, when monopolies came into existence, creating high prices. The governments wanted to maintain few bod of order and control in the modern economy, and their methods were tariffs, subsidies, and the regulation of merchandise of raw materials. The governments wanted to encourage domestic manufacturing rather than let the raw materials go out of the country.

Several changes occurred as a result of merchant capitalism. Hoarded bullion began to be used for enthronisation and conduct in the Netherlands, England, and Spain. Those who favored a protectionist policy towards memory money in the country tried instead to upshot artisans so the specialized labor would take place at bottom the country. Prices rose dramatically throughout Europe, a change that was apparently unexpected, a combination of an increasing population and production that did not increase (Greaves et al 485). High prices for food created a sore hardship for the poor. Changing agricultural practices somewhat compensating for this difficulty, as farmers changed to figure out rotation instead of leaving arable land unplowed for a year to restore fertility.

Merchant capitalism take to major changes in the way the textile businesses were organized. Previously textile workers had been members of guilds, who owned th

Merchant capitalists too formed new forms of business organizations to take advantage of trade opportunities in Asia, Africa, and America. Marco Polo was one of these types of international traders of particular interest because he wrote detailed accounts of his travels and the cities where he traded (Reilly 445).

To finance these overseas expeditions, various merchant companies banded together with a monopoly on certain types of goods. This was make with the approval of the government (Greaves et al 486). In fact some governments contri barelyed to the costs of this type of commerce, as did the aristocracy. Some of these companies were concerned with colonizing as well as commerce.

Greaves, Richard L., Robert Zaller, Philip V. Cannistraro, and Rhoads Murphey. Civilizations

eir own shops but not the materials on which they worked. English capitalists changed this arrangement by distributing raw wool to the resolution workers for spinning, dyeing, and weaving, bypassing the traditional guilds with their controls on wages, working conditions and prices. This changed lowered the overhead because the workers toiled in their own cottages (Greaves et al 486). This system allowed for greater profits for the merchants, but the workers had no hope of bettering their situation, creating a division between the haves and the have-nots.

Reilly, Kevin. Worlds of storey: A Comparative Reader, Vo
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