How European Exploration Changed its Economy Did you know that capitalism as we know it originated from the age of exploration in Europe? Capitalism wasn’t the only thing that happened as a result of the age of exploration. Things like market economy and colonization were developed because of the explorers. The age of exploration jump started the European economy with the introduction of capitalism, market economy, and colonization.
One of the “philosophies” so to speak that came as a result of the age of exploration was capitalism. Capitalism is where people invest in something in order to gain profit later. An example of capitalism in the time was when monarchs like Ferdinand and Isabella (the rulers of Spain) invest and support explorations to gain power and wealth. They did this with Christopher Columbus in 1492 when he sailed to find India. Investing in capitalism is a high risk high reward system meaning, that if you were to put money into an exploration and they sink in the middle of the ocean you lose all of your
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Colonization in the Americas was greatly beneficial for Europeans economically, it allowed the nation to turn natives into slaves and force them to work on plantations. Sense Europeans brought all kinds of nasty diseases to the Americas the natives began to die. So the Europeans would import West African slaves to replace the dying natives. The colonies then sent goods back to the homeland, this method allowed for a steady life line of goods for the homeland securing an economic foothold.
In conclusion the age of exploration jump started the European economy with the introduction of capitalism, market economy, and colonization. These ideas and principles increased trade not only in Europe but, around the world as well. Those explorations lead to these principles things being developed and shaping the world as we know it