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Europeanlism refers to large scale trade or commercial trade conducted through overseas. The first stage of capitalism that appeared during 15th Century where by trade and commerce was conducted by European countries with the continent of Africa, Asia and America through overseas trade and also silver (precious metal) were used as the coin.
There were various factors that led to the rise of merchantalism they are as follows;

1. Internal trade (inter trade and craft). The Development of guilds and craftsmen during the period of collapse of European feudalism led to the rise of merchantalism because commodities produced by craftsmen and people who were involved in guilds which accelerated the internal trade example ornaments, plates, mirrors, were later on exported to other parts of the world particularly in Africa, hence the rise of mercantilism.

2. Periodic exhibition among European nations. This promoted the existence of overseas trade among European countries, Africa, Asia and America because the new commodities which were exhibited and new technology acted as the acceleration of merchantilism because merchants and other people of different parts of the world were interested to use the commodities that were exhibited.

3. The development of marine technology with compass direction and compass bearing: During the 15th century, Europe witnessed rapid changes in scientific curiosity and inquiry. That was a century in which the scientific revolution took firm roots. Meanwhile marine technology among the European nations enabled the merchants to sail even deep sea. The nations and merchants also constructed large ships which could carry bulky materials such as cotton, tobacco and minerals. Merchants benefited greatly from the marine technology as they could sail to various parts of the world.

4. Development of financial institutions and insurance company. These provided loans; credit and services to European merchants in order to continue involving in trading activities; so the role played by these institutions accumulated more wealth which they used on investment of economic sector hence the rise of merchantalism.

5. The Rise of strong states and political revolution; this provided security among merchants. Example; British after the revolution which removed King Charles I & II from power gave rise of Tudor monarchy. Example The rise of King Henry the navigator facilitated the rise of merchantalism like loans and credit and in France after king Louis was removed from power, French managed to get involved in merchant trade.

6. The role played by enclosure system; This was brought by agrarian revolution, it played a great and important role towards the development of merchantalism because the large scale plantations were established and increase an output of agricultural industrial raw materials like wool, wheat flour, and these agricultural raw materials increased manufactured goods in industries which were needed by European merchants for their own use.

7. Geographical discovery of the new world by Christopher Columbus on 24.10, 1492; led to establishment of plantation and mines in America, Canada, Peru, Colombia, etc.So the establishment of these needed slave labour from Africa after the failure of the red Indians and expressiveness of European criminals and prisoners, hence this led to the establishment of merchantalism because Europeans were in need of raw materials.

8. Profitability of unequal exchange; during this period European got more wealth by using illegal ways like piracy, kidnapping etc. but also they used to sell in Africa commodities of low value and things which were unsellable in Europe, things such as mirror, while they obtained things of high value from African continent like Ivory. So this led to the rise and development of merchantalism.

9. Crusade war; this was a religious war between European (Christians) vs. Arabs (Muslims) in the Middle East near Turkey to control trade and capture the whole city. This made the way to become insecure for European traders but also Arabs controlled the trade routes whereby they increased tariffs to European traders. This forced Europeans to the alternative way to reach India (Asia) and Africa for conducting trade. Hence development and the rise of merchantilism.

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