Economic Developments of Colonial Expansion

How did Exploration Impact the World Economies? The Age of Exploration changed trade patterns and the ways in which nations made wealth B. The economic system changed from kings having all the power to more influence of the regular people Portugal, Spain, Britain, France and Netherlands had the largest overseas empires and the largest economic opportunities to get wealth

C. Columbian Exchange GS #37 1. the global transfer of food, plants, animals, goods and ideas Example: The Spanish forced the Native Americans to practice Christianity and in return the Native Americans learned how to make things from copper and iron GS #37 37. What name was given to the global transfer of goods, food, plants, animals and ideas? What negative affect did this have on the natives?

As the population increases during the Age of Exploration it will lead to an increase in the demand of goods More People = More Goods

FEUDALISM King owns all the land, controls all the people, controls the economy the king would allow some of his lords/nobles to use the land (no private ownership) the king was very limited to expanding his empire GS #35 35. What type of economic system was used prior to exploration, where the king controlled the economy and all the people on the land?

That's mine too! All Mine! Mine! Mine Again!

Stupid Feudalism I can’t expand anywhere without a huge war!!! Age of Exploration changed everything,- kings could now expand empires by taking new land and creating new trade partners, Feudalism dies out and leads to… Stupid Feudalism I can’t expand anywhere without a huge war!!! Wow love the Age of Exploration – lets go find me land for my empire!!!

MERCANTILISM - this is a theory that a country’s power is based on wealth - kings now need help from their lords/nobles to expand their empire’s size and trade, king still in control - Basics: gain as much gold/silver as possible favorable balance of trade (exports > imports) build colonies only trade with your country high tariffs (tax) on imports 36. What economic system believes that your country’s power is dependent on it wealth (gold/silver), strict control over colonies and wanting more exports than imports? GS #36

I need to get more gold and silver!!! Oh and land – need more land!!! Haha, the king needs the help of his nobles so he can have a bigger empire. Can you say tax break for us!!! Man, we can only trade with Britain – that’s not fair!!! Stupid King!!! Tariffs IMPORTS EXPORTS

Mercantilism Britain American Colonies They can sell goods to any nation that wants them! What the colonies feel like…

Based on the political cartoon – is mercantilism a blessing or a curse to the colonies?

Based on the political cartoon – is mercantilism a blessing or a curse to the colonies?

Now even more competition arises between countries and kings realize they need more help from their people to expand their empires and gain more power Spain is A bigger Empire!!! Britain is A bigger Empire!!!

Burger King Corporation Headquarters (Mother Country) Burger King Franchise (Colony or Trade Company) Who owns these Franchises??? Can the king afford to pay for all of this? He only has so many friends so what is he going to do to get even more franchises? What do we call people who risk their $$$ to start a business?

CAPITILISM GS #38 property, make goods and buy and sell goods freely - is a system in which people, rather than the gov’t, own property, make goods and buy and sell goods freely - In order for a nation to become more successful it needed individual people to start investing in trade, colonization and exploration - kings now depended on Entrepreneurs to use their own capital (money) and take a risk by starting/investing in a business, hoping to make a profit GS #38 38. What economic system depends upon private ownership and less gov’t control allowing for individual (entrepreneur) profit? (AKA market economy)

Lassiez Faire Adam Smith Capitalism Supporter “Wealth of Nations” Gov’t stays out of any economic issues Economy should be controlled by the people!!! Lassiez Faire

this will create a market economy where people decide how to spend money, what to buy and what to sell – the people start to take the power of the economy away from the king - competition increases among European countries, which results in prices being more fair the regular people had more opportunities to get jobs, make money and own property leading to the creation of a new social class – the middle class, made up of merchants, traders and artisans 39. How did this new economic system impact the class system? 40. How was exploration good for the regular people? GS #39/40

Entrepreneurs Joint Stock Companies Amsterdam Chamber of V o C Virginia Company British East India Company

That’s okay I will just raise taxes – I’m so sneaky hehe! Thanks to exploration I am not tied to the land anymore. I can go to the new world, start a business and own my land. Capitalism Rocks!!! Except for the taxes! If I want a bigger empire I need to let go of my control on the economy. That’s okay I will just raise taxes – I’m so sneaky hehe! GS #40

As exploration grew, so did the markets to sell your goods and demand for these new items increased

Economic Development of Colonial Expansion – more people means more goods needed – demand high What type of economic system was used prior to exploration, where the king controlled the economy and all the people on the land? Feudalism What economic system believes that your country’s power is dependent on it wealth (gold/silver), strict control over colonies and wanting more exports than imports? Mercantilism What name was given to the global transfer of goods, food, plants, animals and ideas? What negative affect did this have on the natives? Columbian Exchange diseases, slavery, forced religion

What economic system depends upon private ownership and less gov’t control allowing for individual (entrepreneur) profit? (AKA market economy) Capitalism How did this new economic system impact the class system? created a new Middle Class How was exploration good for the regular people? gave them new opportunities – own their own business, own private land, earn more money, afford more food, better medicines