Capitalism is an economic system in which you do an investment and make a profit out of it(money).
The more exploration there was the more people wanted to trade which gave people money to invest in companies.
when people had more money they were able to buy and sell more things.
when a product was in high demand, it was put to a higher price.
Merchants were in need to hire peolpe to turn raw materials into products.
Many people were hierd to workin cottage or homes.
Lots of products were created this way it was called cottage industry.
The beieves that the countries had was that the best way to gain money was to save money and that that would bring power.
In order to do this they increased exports.
They also established colonies in other places to get MORE money.