Mercantilism, with its core principle of accumulating wealth for the mother country, deeply influenced colonial relationships and policies. European powers, adhering to mercantilist principles, viewed colonies primarily as sources of raw materials and as markets for finished goods. This led to policies that restricted colonies from trading with nations other than their colonisers, evident in legislations like the Navigation Acts imposed by Britain. Colonies were also often prevented from developing their own industries that could compete with the mother country. Such exploitative economic relationships often led to tensions and conflicts, as colonies sought more autonomy and better terms of trade.

Capitalism, with its emphasis on private ownership, free markets, and profit maximisation, naturally led to inequalities. Those who owned means of production amassed wealth, while many workers faced exploitation, receiving wages that did not correspond with their output. As industries grew, traditional artisans and craftsmen faced competition, often leading to unemployment and poverty. Urban areas saw a stark contrast between affluent industrialists and a growing working class living in poor conditions. In response, various societal movements emerged. Labour unions were formed to fight for workers' rights, demanding better wages and working conditions. Social thinkers like Karl Marx critiqued capitalism's inherent inequalities, leading to the development of alternative economic ideologies and, in some cases, revolutionary movements.

The establishment of maritime trade routes during the medieval period significantly altered the global demand for specific commodities. For instance, the spice trade, dominated by the Indian Ocean route, saw European markets developing an insatiable appetite for spices like pepper, cloves, and cinnamon. Similarly, the Atlantic trade routes led to a surge in demand for sugar, tobacco, and cotton in European markets. As ships could carry larger quantities compared to overland caravans and the risks of middlemen and piracy (though still present at sea) were somewhat diminished, commodities became more accessible and somewhat cheaper. This led to increased consumption, changing dietary and lifestyle habits in many parts of the world.

The establishment of trading companies had profound impacts on local economies and political structures in colonised regions. The British East India Company, for instance, started as a trading entity but quickly expanded its reach, establishing political and territorial dominance in parts of India. This led to the marginalisation of local industries, especially textiles, as raw materials were shipped to Britain, and finished goods were sent back to be sold in Indian markets, often at higher prices. Local rulers and nobility were either co-opted or sidelined, resulting in a shift of power dynamics. Moreover, the Company introduced new land revenue systems, often leading to socio-economic distress among peasants. In essence, these trading entities, under the guise of commerce, deeply altered the economic and political fabric of the colonised territories.

Yes, several technological advancements facilitated the growth of global trade during this period. The development of the caravel, a ship that could sail against the wind and was more manoeuvrable, was crucial for the Age of Discovery. Astrolabes and improved cartography allowed for better navigation at sea, reducing the risks of long voyages. On land, the improvement of road networks and the introduction of carriages and wagons facilitated quicker and more efficient trade. Additionally, the establishment of joint-stock companies and the development of banking and credit systems provided the necessary capital and reduced the financial risks of undertaking large trading ventures.