Question

1. how did the actions of big companies such as the english and dutch east india companies lead to new developments in economics? circle the correct effect.

effect
cause
mercantilism
the east india companies sold shares in their company to raise large amounts of cash.
or
capitalism

1. by the early 1700s, consumers began to demand more

luxury goods such as silk and spices.
common items such as cotton cloth and sugar.

Explanation:

1. The East India companies selling shares is a key aspect of capitalism where capital is raised through share - holding. Mercantilism focuses on a nation's wealth accumulation through trade balance (exports over imports) and precious metals.
2. By the early 1700s, due to factors like population growth, changing social structures, and increased availability (in part due to colonial trade and production), there was a shift in consumer demand from mainly luxury goods (which were more exclusive before) to common items like cotton cloth and sugar.

Answer:

1. capitalism
2. common items such as cotton cloth and sugar