Age of Exploration: Focus- Commercial Innovations

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Presentation transcript:

Age of Exploration: Focus- Commercial Innovations Changing Ways of Life Mercantilism

Discovery 1492 Christopher Columbus discovers the new land. His first trip is to Hispaniola and Cuba Amerigo Vespucci was an Italian mapmaker who claimed Columbus had discovered a “New World” & America was named in his honor

Spain and Portugal Two biggest exploring nations Began fighting over land in New World Asked Pope to solve dispute The Pope divided the New World in half with a line Pope Alexander VI

Pope’s Solution: Draw a Line West of line is Spain’s/East of line is Portugal’s

The Treaty of Tordesillas (1494) Became obvious Spain got much more land Moved the line west a little.

Slavery in the New World Triangular trade Set of trades between three points The most famous was sugar/rum/slaves Begins the transatlantic slave trade: African chiefs sell members of other tribes for guns & alcohol 10 –24 million Africans were brought to America 1 in 5 did not survive the journey (Called the “Middle Passage” because it was the middle leg of the triangle)

Colombian Exchange many products were carried to and from the New World like: to the New World: horses, cows, wheat, rice, & oranges from the New World: corn, potatoes, tobacco, cacao (chocolate) Europeans carried unknown diseases to the native Americans which killed millions (including Small Pox)

ESSENTIAL QUESTION What new economic institutions and innovations developed as a result of the expanding trade networks? ANSWER: New economic systems emerge to control and expand trade

Commercial Revolution Changing Ways of Life Commercial Revolution new business methods for investing money, speeding the flow of wealth, & reducing risks: result of Age of Exploration rise of free enterprise (modern capitalism), economic system in which money is invested by individuals in business to make profits

More Commercial Revolution people who wanted to invest in exploration combined resources in joint-stock companies, or organizations that sold stock & shared in profits & losses rise of entrepreneurs, or individuals who combined money, ideas, raw materials, & labor to make goods & services Note that Capitalism goes against some of the ideas of Mercantilism