1.1 Development of Capitalism This section details the emergence of capitalism from feudalism, its defining characteristics, and the contrasting ideologies of classical capitalism and Marxian economics. 1.1.1 Emergence and Growth of Capitalism Capitalism grew out of the decline of feudalism and became the dominant economic system in the Western world. Fully-fledged capitalism emerged in Northwestern Europe (Great Britain and the Netherlands) from the 16th to 17th centuries. Mercantilism: Definition: The distribution of goods bought at a certain price and sold at a higher price to generate profits. Consolidation Factors: Ethics fostered by the Protestant Reformation (16th century). Rise of strong nation-states in Europe that supported capitalism through regulations, uniform monetary systems, and public investment, facilitating a shift from public to private initiative. Decline of Mercantilism: In the 18th century, challenged by economic theorists led by Adam Smith who argued against the belief that one state's wealth increased at the expense of another's. #note #studysmart #ethiopian_tik_tok🇪🇹🇪🇹🇪🇹🇪🇹 - @methyops