EUROPE Changes Their Economic System MERCANTILISM DOMINATES EUROPE AND HER COLONIES

MERCANTILISM GOVERNMENT– CONTROLLED (GOLD & SILVER) BY TRADE ECONOMY WITH THE GOAL OF BUILDING UP A NATIONS BULLION… (GOLD & SILVER) BY TRADE 1. Mother Country Claims Colony Go Back To Mother Country Back To Colony 2. Raw Materials & Gold 3. Finished Products Go

THE GOVERNMENT IS IN CHARGE OF MERCANTILISM BUILD COLONIES (THEY SUPPLY RAW MATERIALS) EXPORT MORE IMPORT LESS (THIS CREATES A FAVORABLE BALANCE OF TRADE) 3. FORCE TARRIFS (TAXES) ON FOREIGN GOODS TO KEEP THEM OUT OF YOUR COUNTRY 4. DO NOT ALLOW YOUR COLONY TO TRADE WITH OTHER NATIONS

CAPITALISM 4. RAW MATERIALS 2. MIDDLE CLASS & 3. NEW MARKETS Economy which PEOPLE Not the Government Own Property, Make Goods, and Buy and Sell them Freely !!! Build up of 1. CAPITAL (money) to INVEST (put into business) 2. MIDDLE CLASS & 3. NEW MARKETS 4. RAW MATERIALS

COMMERCIAL REVOLUTION COMMERCE: Buying and selling goods in large amounts over long distances of travel ENTREPRENURE: Wealthy businessman who risks money in order to make a profit NEW SOCIAL CLASS: Middle Class made up of **Merchants: traders and businessmen & ** Artisans: Craftsman or skilled worker EX: Barrel Maker, Blacksmith, Shoemaker, Woodworker, Rope Maker