The Columbian Exchange & Global Economics 4.4 The Columbian Exchange & Global Economics

Columbian Exchange Columbian Exchange = global trade of foods, plants, & animals during colonization of Americas Corn, potatoes, tomatoes sent from Americas to world Horses, sheep, cattle, pigs, bananas brought to Americas

Capitalism Capitalism = economy based on private ownership & investment for profit People created businesses Businesses made money Money reinvested in the business Increase in economy leads to inflation Inflation = steady rise in price of goods

Joint-stock Companies Stock = pieces of a company Stock sold to raise capital ($$) for company Each stockholder owned a part of the company Stockholders only responsible for $$, not daily operations Risks & profits shared between all stockholders

Mercantilism Mercantilism = country’s power depended on its wealth Wealth allows a country to build navy, purchase goods Favorable balance of trade needed Export more than import Goal = self-sufficiency