15.5: Effects of Global Contact

The Columbian Exchange Explorers of the 1500s-1600s = paved the way for a world dominated by Europeans The Colombian Exchange: the exchange of goods that began with Columbus’ return to Spain in 1493 – 1 st = Columbus brings plants & animals back to Spain from New World – 2 nd = Returns to West Indies with settlers and European plants & animals

New Foods & Animals Europeans found new foods in Americas – i.e. Tomatoes, Pumpkins and Peppers – Most Important: Potatoes & Corn Potatoes = easy to grow & store – Helped feed Europe’s rapidly growing pop. Corn = became one of world’s most important cereal crops Cattle, Pigs, Goats & Chickens = introduced to Native Americans by Europeans – Improved the Native American diet Horses & Donkeys = transported people & goods more quickly – Provided North Americans a more effective way to hunt buffalo

The Global Population Explodes Key Cause = dispersal of food crops from the Americas Colombian Exchange = sparked migration of millions of people – Atlantic Slave Trade brought Africans forcibly to the Americas – Europeans settled on the fringes of Africa & Asia Native American Populations = DECLINED – MIGRATION OF EUROPEANS = spread diseases which Native Americans lacked immunity to – Others were wiped out by conflict

The Commercial Revolution Price Revolution = 1500s, prices began to rise in Europe = period of high inflation – Much more $ in same time – Inflation = rise in price with a rise in money available Cause of Inflation = enormous amounts of gold and silver flowing into Europe from Americas

Capitalism Emerges Causes of Capitalism Emerging = – 1. expanded trade – 2. increased money supply – 3. push for overseas empires Capitalism = economic system in which businesses are owned privately – Entrepreneurs = people who took on financial risk to make profits Key to the success of capitalism Organized, managed and assumed the risk of doing business Hired workers, paid for cost of production, transport and materials TULIP MANIA!!!!

New Business Methods Bookkeeping = Europeans adopted this practice from Arabic cultures –S–Showed net gains or losses of wealth Banks increased in importance = allowed wealthy merchants to lend money with interest Joint-Stock Companies = allowed people to “pool” their resources together for overseas ventures –I–Investors = shared in profits of these companies, or in the losses

The Rise of Mercantilism Aimed at strengthening national economies Mercantilists = believed nations’ wealth could be best measured in its gold and silver treasure – To build this supply = must export more goods than you import – Thought colonies existed to benefit the “parent” country (provided resources & materials not available in Europe) – Thought that colonies served as a market for goods of the parent country

European Control Over Colonies: Passed strict laws regulating trade with colonies Colonists could not set up own industry to manufacture goods Colonists were forbidden to buy goods from foreign countries

Increasing National Wealth: Mercantilists urged many new policies: –1–1. exploit mineral and timber resources –2–2. build roads –3–3. back new industries –4–4. impose national currencies –5–5. standard weights and measures –6–6. Imposed tariffs on imported goods Designed to protect local industry from foreign competition **ALL THESE MEASURES GAVE GOVERNMENTS MORE CONTROL OVER THEIR ECONOMIES