The Colombian Exchange & Global Trade Section 4-4

The Colombian Exchange The global transfer of goods during the colonization of the Americas Tomatoes, squash, pineapples, tobacco, cacao beans, and the turkey came from the Americas The two most important goods were corn and potatoes (inexpensive and highly nutritious)

The Colombian Exchange cont. The Americas got livestock (cows, goats, pigs, horses) and diseases from Europe Grains (wheat, barley, and oats), yams, and bananas come from Africa and Asia This is significant because of the improved lifestyles provided by the new goods that were available through the exchange The diseases killed millions of Native Americans

New Business Capitalism - an economic system based on private ownership and the investment of resources in order to turn a profit Joint stock company – investors buying shares of a company, they can pool their resources in order to accomplish more

Effects of New Business As a result of new business practices most nations saw an increase in their money supply, this led to inflation (higher prices because of more demand than supply) The Middle class business men began to emerge as a dominant force in society

Mercantilism And economic policy that stated that a nation’s power depended on its ability to gain wealth. Favorable balance of trade - when nation sells more goods than it buys Colonies provide raw materials that home country uses to make goods