Trade development

 Trade development

In the beginning, trade was mainly confined to bringing scarce goods needed in Europe from the East and selling them in European markets: silk textiles, spices, and weapons. As for trade, it was limited to local products, as it was on the producers themselves. But the discovery of America and the beginning of immigration to it, changed the nature of trade currents. Merchants began working on exporting industrial products to America, and bringing raw materials from it and from other colonies. Thus, the merchants had to  contact the world of industry and take care of its development.

So the merchants started asking the makers to work for themselves, so the merchant would give the raw materials to the maker, and take the output for export, as he always seeks to buy in order to sell at a higher price, but now he is forced to make what he buys pass through the maker who transforms its shape and prepares it for consumption.

From this moment, merchants began to be interested in ways to determine the wages of manufacturers, their speed of work, and their efficiency in production

The emergence and prosperity of the domestic work system in Engelt R was linked to the textile industry. In the fifteenth century, the woolen textile industry spread

And the work was done all - sometimes - in one house, or it was done in multiple houses, each of which specialized in one of the processes that production goes through, such as spinning, weaving or dyeing....etc.

The system of domestic work provided the "land serfs" with an opportunity to increase their incomes and improve the standard of their families, for whom the land did not provide for subsistence, so they helped some craftsmen in their spare time.

The expansion of business and the increase in the large amount of marketing was rightly considered the basis for the change in the economic system. The economic movement extended from Spain and Portugal to India and the Americas and introduced changes in the global economic movement that were not previously known. The commercial movement was active and the American and Spanish ports, which were the hub of European trade, flourished.

economic capitalism system

      The English economist, Hobson, defined the capitalist system as the organization of work on a large scale by the employer, a group of business owners who own large amounts of money and wealth through which raw materials and machinery can be purchased and workers hired in order to produce increasing amounts of money and great financial wealth that Make a profit for them.

Francois Kenai, a French economist, says about it, “It is the freedom of movement, the freedom to acquire money and wealth, and the freedom to dispose of their property as they wish, and the state may not interfere in it.”

The German scientist Max Weber says that ((if he means by capitalism that great project that includes control of major financial resources that produce wealth for their owners as a result of speculation, borrowing, commercial projects and war)) then capitalism as an economic system is based on the legal regulation of the free wage by the owner of the capital or his agent . As Marx asserts that capital is the system of commodity production. In the capitalist system, producers do not produce only to meet their own needs or the needs of individuals with whom they are related, but includes a market that accommodates the entire nation, often an international market.

The essence of capitalism is the investment of money with the expectation of achieving gains and profits, as it is possible to achieve huge profits in light of the risks of projects, that is, to achieve a large and abundant profit from the large difference between the price paid from the purchase of raw materials

It depends on general rules

1. Freedom to set prices in the market.

2. Freedom to own the means of production

Where Adam Smith said a twisted admission that the goal of capitalism is to grab profits, not serve society. As you infer from all this from capitalism, the purpose of production was consumption, not saving. The motive of the capitalists was profit.

Capitalism aimed to saturate the people of its class with money and accumulate their wealth.

Where there was a gradual change in the European economy from the tenth and eleventh centuries caused the emergence of trade between East and West.

Cities appeared and their wealth grew, and during the Crusades and friction with the East (Asia), national governments encouraged the establishment of trade with them and protection for them. When the sixteenth century came until the feudal economy and the system of guilds suffered a very great decline, the landlords began to hire workers instead of occupying them them without pay.

And the trade unions and manufacturers faced intense competition from the capitalists outside the unions, as many students and successors became wage workers working for the capitalists outside the union. Represented by ((the movements of geographical exploration)) where wealth was formed and capitalism grew.

Capitalism descends from the core of the bourgeoisie. Although the bourgeoisie in its last stage is capitalism in its first stage, there is a big difference between the concept of bourgeois capitalism. The bourgeoisie represents a social class whose activity is focused on exporting and importing goods. Capitalism is a social class that owns industrial projects in which the machine replaces the labor force. Money becomes an essential element of the economy.

In other words, the role of old age in the bourgeoisie is the role of childhood in capitalism, where the bourgeoisie was born under the auspices of the feudal system that is based on

1. Lack of central government.

2. permanent dependency or serf (slaves)

3. Free and compulsory service in the land of the master.

4. Present gifts on feasts to the gentleman or noble.

Only capitalism depends on laws

1. Searching for profit

2. Competition and competition law

3. The law of concentration is the ability to produce

4. Low Price Law

Trade was not controlled by the guilds, but by the individualistic tendency of capitalism

As feudalism did not transform into a capitalist system in Europe in equal degrees, a rapid and major transformation took place in the European West, while in the East it was very slow in the process of transition to capitalism.

In sum, the economic life in the era of commercial capitalism was regulated by legislation and was not left free, as would be the situation after the industrial revolution and the completion of the elements of capitalism, and thus distinguishing it from the era of free industrial capitalism that prevailed in Europe in the nineteenth century, in which the elements of capitalism were completed

The stages of development of capitalism

The stage of commercial capitalism.

The stage of industrial capitalism.

Post-industrial capitalism

stage of financial capitalism.