Global II Chapter 15, Section 5 The Commercial Revolution READ Pgs. 366 – 369

Objectives 5.4Describe the role entrepreneurs and capitalists played in the Commercial Revolution 5.5Explain why Mercantilism developed in the 1500’s 5.6Describe how the Commercial Revolution changed daily life in Europe

Lesson Launch Directions: Use the diagram below to discuss the following questions with your partner. (1) What parts of the family are involved in making the wool into yarn? (2) What person is involved in all aspects of the Domestic System? (3) Why might a merchant go through this process? Merchant buys raw wool from sheep raiser. Merchant takes wool to farm families-women and children clean, sort, spin into yarn Merchant takes fabric to dyer Merchant takes yarn to weaver Merchant takes fabric to market Merchant takes fabric to fuller for cleaning, shaping

1. Mercantilism (Economic Philosophy) Goals: Exportation – export more than import – Manufactured Goods Profit – from manufactured goods – Increase Gold Supply Power – competition between nations – Military & Colonial Possessions

1. Mercantilism (Economic Philosophy) Ideas behind Mercantilism Manufactured goods rather than raw materials Regulate trade and commerce to be self- sufficient (Tariffs, Taxes, Infrastructure) Invest in Industry Colonies for raw materials and markets

Mercantilism Summary Economic system of the1600’s developed by nations. European nations saw that resources were limited and the key to a strong nation was gaining wealth from gold and manufactured goods. Nations were to regulate trade and commerce to be self- sufficient. Nations imposed tariffs on foreign made goods. Colonies existed to benefit the Mother Country by supplying raw materials and being a market for finished goods. Mercantilism lead to Colonies.

Changes due to Commercial Revolution Domestic System Will bypass the guild system Emergence of Capitalists /Entrepreneurs People with money who invest in business Usually at high risks to their money! Nobles and upper middle class gain wealth (Investors) Shifted economic power from the Mediterranean to the Atlantic Triangular Trade/Columbian Exchange

Triangular Trade Ask your partners: What is being traded? What is going to happen as cultures meet for the first time? Along with cultural diffusion, what is going to spread along these new trade routes? This also spread during the Middle Ages along trade routes!!

The Slave Trade

Homework Mercantilism!! Pg 368

Please do the following!!!! Take out your homework: Mercantilism note card! Review with the person next to you: What are the three G’s? What was the domestic system? What is triangle trade??

Columbian Exchange The exchange of goods such as: What were the most beneficial and harmful aspects of the Columbian Exchange? Why?

Effects of Increased Trade Increased National Rivalries Triangle Trade: Slaves, Raw Materials, Finished Goods Disease spreads to Americas Smallpox Plague Spanish destroy native populations due to advanced technology (weapons).

Review WHAT IS MERCANTILISM?!?!?!??!??!?!?!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!??

Changes from exploration MIDDLE AGES 1. Guild System 2. Rural population Small towns 3. Subsistence Farming Manor system 4. Feudalism (Manorialism) 5. Sole Proprietor One-investor COMMERCIAL REVOLUTION 1. Domestic system 2. Start Urbanization Large towns 3. Start Commercial Farming (Cash Crops) 4. Mercantilism/Capitalism 5. Joint-Stock Companies Many-investors

Transition of European Economic Systems 1000’s {Industrial Revolution} {Commercial Revolution} {Middle Ages – Feudalism} Factory System Mercantilism Domestic System Guild System

Mercantilism S E 1.b O

Commercial Revolution

Closure 1. What role did entrepreneurs and capitalists play during the Commercial Revolution? 2. Why did Mercantilism develop during the 1500’s? 3. How did the Commercial Revolution change daily life in Europe?

Homework Encomienda System Use sheet