In European countries, joint stock companies were a more organized method for conducting international trade, which allowed them to monopolize wealth by putting forth a small amount of risk for a large amount of profit and enabling them to accumulate large amounts of capital. Many explorers knew about the beneficiality of these areas in the New World and recommended investment to their European leaders. Christopher Columbus, in his letter to King Ferdinand and Queen Isabella, writes of his remarkable discovery of an entire continent and how it would make Spain an untouchable powerhouse to invest in it. (Columbus). Columbus writes this letter to recommend to seize the opportunity immediately, as this land could provide riches as well as economic dominance. …show more content…
The American colonies had new goods that were in high demand in Europe, such as tobacco and cotton. Colonists traded these goods for European made goods. This balance of trade led to the development of the Columbian Exchange, and the mercantilist system. Both of which, favored the economies of Europe and mistreated the economies of the American colonies. As an English explorer, Raleigh would’ve experienced first hand the freedom of financial security when pursuing colonization. He documents the pleasing results of the investment to perhaps return to Queen Elizabeth I, showing that she made a worthy investment, and a smart business decision. Similarly, in his article, “A Rationale for New World Colonization”, Richard Hakluyt, an English writer, describes the advantages of New World colonization, made possible by his own investment in the Virginia Company (Hakluyt). Hakluyt claims that the colony would supply England with raw materials, such as timber for ships, silkworms for silk, and ideal mining areas for gold and silver, as well as provide a market for finished products. The American colony would also provide a place to send England’s poor and allow them an opportunity to contribute to the nation’s