Explain why the capitalist system developed in Europe. (4 points)
1. Industrial Revolution: The capitalist system developed in Europe in response to the Industrial Revolution, which led to the rise of factories and the mass production of goods. Capitalism provided the economic structure necessary to support this rapid industrialization and growth.
2. Individual initiative and entrepreneurship: Capitalism promotes individual initiative and entrepreneurship, allowing individuals to take risks, innovate, and create wealth. This emphasis on competition and market-driven incentives encouraged economic growth and development in Europe.
3. Private property rights: Capitalism is based on the idea of private property rights, where individuals have the right to own and control their own property and resources. This system provides individuals with the incentives to invest in and develop their property, leading to overall economic growth and prosperity.
4. Mercantilism and colonialism: European countries engaged in mercantilist economic policies and colonialism, which emphasized wealth accumulation through trade and exploitation of resources. These policies laid the groundwork for the development of capitalism in Europe, as they encouraged economic growth and the accumulation of capital.