The growth of overseas trade and new wealth from the colonies had a major economic impact on Europe. These factors led to the introduction of new business and trade practices.
Identify and explain the different types of economic systems.

At the time Europe was in the midst of three main economic systems:

Feudalism: this had been the main economic system in Europe for centuries. It is based on agricultural production, in which the land is owned by a few noble individuals, and is worked by peasants known as serfs who have to give part of the production to the feudal lord in exchange for being allowed to live there, and for security.

Mercantilism: this system is based around the nation-state. In it, the state tries to obtain colonies from which to extract resources in exchange for gold and silver. The main idea is to have a trade surplus represented by a relative abundance of these precious minerals that are then used to finance the government and the military.

Capitalism: this economic system was developing at the time (it began to develop in Italy in the late Middle Ages). It is based around private ownership of the means of production (businesses, machinery, and so on), and the reinvestment of profits and savings in order to accumulate more capital (hence the name). It would go on to become the dominant economic system in Europe in the nineteenth century.