UNIDAD EDUCATIVA PARTICULAR “SAN JOSÉ DE CALASANZ”

Name:……………………………………………………… Date: ……….

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Grade: 2do bachillerato Subject: History and Social Sciences

PART IV: CONQUER PROCESS – CAPITALISM AND

MERCHANTILISM

What is mercantilism?
Mercantilism is an important theory for you to understand. Under mercantilist
policies, a nation sought to export more than they imported to prevent creating
trade deficits. If your country had a large trade deficit it meant that you were
dependent upon other nations for the bulk of your good and products and was,
therefore, a sure sign of weakness. In order to avoid such deficiencies, all major
European powers were in a rush to colonize valuable colonies that would yield
some highly needed and highly profitable resources. It
is important not to get caught up solely in the positive
outcomes that resulted from the Age of Discovery.
One nation’s gain often came at the expense of
another. Many South and North American people
perished from European-transmitted diseases and
warfare instigated by European settlers.
We can also say that it is political economy which developed between the XVI and
XVIII century. One of its main characteristics was the idea of that the nation
prosperity depended on the accumulation of precious metals, and for this task, an
intervention from the state was necessary.
Gold and silver were the main metals cherished by the European reigns.
According to the mercantilism ideas, was the reserve and not the metals flow that
gave prosperity to the nations at that time.
The manufacture production also needed some motivation during this period. In
order to put the commercial balance at their favor, they needed to produce local
products and which were imported to other region. This was important, because
it show us how nations did in order to be more prosperous.
As a consequence, the state needed to be a strong and regulator one, which
leaded by a king, regulated and controlled the economic activity in those days. In
order to help and favor the intern production and exportations, local producers
had the chance to ask for a subsidy.
The Mercantilism helped to reinforce the king’ absolute power. So much that he
could also take part in the socio-political or the social political issues. On the other
hand, that economic system created rivalry between, diverse mercantilism power
nations that started to fight each other in order to get new markets which enables
them to get new territory and wealth. The main nations that led that period were:
France, Spain, and England. They got bigger and bigger thanks to resources usage
in its colonial domains.
Capitalism
“Capitalism is a social system based on the recognition of individual rights,
including property rights, in which all property is privately owned. The recognition
of individual rights entails the banishment of physical force from human
relationships: basically, rights can be violated only by means of force. 
This political system was created by the English in the XVI century and it was not
promoted until the XVIII century after the industrial revolution. It is based on the
capital and good gathering and productive investment like development of
companies or factories, hiring and payment for the employees and the purchase
of machinery. Another country that followed the system was France and Holland.
All of the countries needed something at that time: precious metals were limited
on their lands and they needed them to generate and produce. Their next move
was to increase the amount of merchandise and shipping companies due to the
need of new lands and colonies.
Bourgeoisie adjustment
The term was first applied to those inhabitants of medieval towns in France who
occupied a position somewhere between the peasants and the landowning
nobility; soon it was extended to the middle class of other nations. These people
were usually merchants, tradespeople, and artisans and later bankers and
entrepreneurs. With the development of medieval cities as centers of commerce,
the bourgeoisie began to emerge as an important socio-economic class.
Frequently they banded together into corporations or guilds to protect their
mutual interests from the more powerful landed gentry.
The end of the Middle Ages saw the rise of the nation-states of Western Europe,
with power concentrated in the hands of ruling monarchs. The bourgeoisie
generally supported the throne in its struggle against the feudal order, thereby
increasing their own influence in the emerging nations. As the feudal society was
transformed into the early capitalist society of Europe, the bourgeoisie were the
spearhead of progress in industry and science and of social change.
By the 17th century, this middle class was supporting principles of natural rights
and constitutional government against the theories of divine right and privilege of
the sovereign and the nobility. Thus, members of the bourgeoisie led the English
revolution of the 17th century and the American and French revolutions of the
late 18th century. These revolutions helped to establish political rights and
personal liberty for all free men.
Bourgeoisie was divided into two groups: the high and small bourgeoisie. Among
the high bourgeoisie members were important artisans, rich traders, funders,
jurist and people related with the high nobility. On the other hand, the small
bourgeoisie members were start artisans and traders as well as minor funders.
 UNIDAD EDUCATIVA PARTICULAR “SAN JOSÉ DE CALASANZ”
Name:………………………………………………………… Date: ……….…………………………….
Grade: 2do bachillerato Subject: History and Social Sciences

PART IV: CONQUER PROCESS – CAPITALISM AND

MERCHANTILISM
WORKSHEET #3

1. What is mercantilism?
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2. Why were metals so important at that time?

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3. What is capitalism?
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4. Which were the nations behind the capitalism?

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5. Who were the people involved on the two sides of the bourgeoisie adjustment?
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6. How did the revolutions helped the countries?

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