Which theory was developed to jusify investing in joint-stock companies for the new world?
capitalism
mercantilism
agriculturalism
manorialism

Mercantilism

Explanation:

It is called mercantilism to a set of political ideas or economic ideas of great pragmatism that were developed during the sixteenth, seventeenth and the first half of the eighteenth century in Europe. It was characterized by a strong State intervention in the economy, coinciding with the development of monarchical absolutism.

It consisted of a series of measures that focused on three areas: the relationships between political power and economic activity; State intervention in the latter; and the control of the currency. Thus, they tended to the state regulation of the economy, the unification of the internal market, the growth of population, the increase of own production - controlling natural resources and foreign and domestic markets, protecting local production from foreign competition, subsidizing private companies and creating privileged monopolies-, the imposition of tariffs on foreign products and the increase of the money supply -through the prohibition of exporting precious metals and inflationary coinage-, always with a view to the multiplication of fiscal revenues. These actions had the ultimate goal of forming the nation-state as strong as possible.

Mercantilism came into crisis at the end of the 18th century and practically disappeared by the mid-19th century, with the emergence of new physiocratic and liberal theories, which helped Europe recover from the deep crisis of the seventeenth century and the French Revolutionary Wars. Neomercantilism is called the periodic resurrection of these practices and ideas.

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