What led to the shift from mercantilism to the capitalism?

The shift from mercantilism to capitalism was driven by several factors, including the rise of individual entrepreneurship, the expansion of trade networks, and the emergence of a market economy. As nations began to prioritize free trade and competition over state-controlled economies, technological advancements and colonialism facilitated greater access to resources and markets. Additionally, the Enlightenment's emphasis on reason and individual rights encouraged the development of capitalist principles, allowing for the accumulation of wealth through private ownership and investment. This transition marked a significant change in economic thought and practice, ultimately paving the way for modern capitalism.