What economic systems developed during the Age of Exploration What economic systems developed during the Age of Exploration? Notes #43

When colonies were first established in the Americas, the encomienda system was used to provide a steady labor supply for colonies.

Under this system, many Native Americans were forced to work on large estates in colonies.

The deaths of large numbers of Native Americans led to colonies depending on African slaves for work, starting the slave trade.

The exchange of people, plants, animals, ideas, and technology were part of a larger global trade network called the Columbian exchange.

The transfer of new products and ideas under the Columbian exchange encouraged economic growth in Europe. London, England

The policy of mercantilism also developed during this period, under which colonies were considered to be possessions to benefit European nations.

Under mercantilism, colonies were required to provide raw materials to European nations and purchase European manufactured goods.

 Receiving materials to make goods This created a favorable balance of trade for European nations. Selling goods for a profit   Receiving materials to make goods