NEW PATTERNS OF TRADE

1. The Columbian Exchange a. pgs b. Columbian Exchange is the name historians give this period of time. It is the exchanging of goods between the New World and Europe c. Read the section and create a graphic organizer that shows what goods were traded and also the effects of the Columbian Exchange

2. Mercantilism a. A New Economic Policy i. Mercantilism 1. Basic principle was that a nation’s wealth depended on its wealth 2. Wealth was measured by how much gold and silver that a nation possessed 3. Led to intense competition between nations for wealth during the 1500s and 1600s

b. Balance of Trade i. Mercantilist believed you should build wealth by two ways: 1. Extract gold and silver from mines at home or in the colonies 2. Sell more goods than it bought from foreign countries a. Would create a favorable balance of trade

ii. There are different approaches to obtain a favorable balance of trade 1. To reduce the amount of goods imported from other countries by placing tariffs (import taxes) on those goods a. Made import goods more expensive than similar goods produce within the nation

2. Encourage exports that could sell for high prices a. Manufactured goods sold to other nations at a higher price than new goods b. Countries encouraged manufacturing and the export of manufactured goods i. Provided subsidies (grants of money) to help business people start new industries

3. Purpose was to control overseas sources of raw material and precious metal a. Why was this import? i. A country did not need to spend any of its money obtaining raw material ii. Foreign countries were always considered rivals

C. Colonies i. Building colonies was essential to mercantilism ii. Meant to control sources of raw materials and proved new markets for manufactured goods iii. Only existed to benefit the mother country iv. Restricted economic activities 1. Could only buy and sell with the mother country

d. Impact of Society i. Towns and cities grew as business activity increased ii. Emergence of wealth merchants who had more power in their towns

3. Rise of Capitalism a. Capitalism emerges i. Capitalism 1. It is an economic system 2. Most economic activity is carried on by private individuals or organizations to seek a profit

b. Rising Prices i. The demand for goods raised prices ii. Increased in money supply also raised prices

c. A New Business Organization i. Joint-stock company 1. Investors brought shares of stock in the company 2. Profit and loss was shared among the investors a. 1 st joint-stock company was The British East India Company

The Atlantic Slave TRade

1. The Origins of the Slave Trade a. The Atlantic Slave Trade i. Plantations 1. Estates where cash crops (i.e. sugar and tobacco) were grown on a large scale 2. Native Americans were 1 st source of labor for these estates 3. Indentured Servants a. People who worked for a certain period of time in exchange for passage to the Americas b. Expensive to maintain

4. African Labor a. Forcibly taken to the Americas b. Most were from West Africa c. Some were supplied by African rulers in exchange for European fire arms d. Others were kidnapped by Europeans on slave trade

ii. Triangular Trade 1. Ships carrying European goods to Africa in exchange for slaves 2. Middle Passage a. Journey of Africans to the Americas to be sold as Slaves b. Olaudah Equiano i. Former slave ii. Wrote about the horrific conditions for those on the slave ships iii % did not survive the journey 3. Carried American products such as sugar, rice and tobacco to Europe

2. Slavery in the Colonies a. Living Conditions i. Most worked on Plantations ii. Skilled craft workers continued their trade iii. Women were sometimes given basic domestic duties as servants and cooks iv. Had to meet their own basic needs (cooking, cleaning, mending clothes) at the end of the work day v. Living conditions were harsh 1. Owners and overseers inflicted physical and degrading punishment for minor offenses

b. Resistance i. Laws saw slaves as property ii. Some resisted by trying to keep cultural traditions alive iii. Some slowed down their work or destroyed equipment iv. Some revolted v. Others escaped and established communities of runaways in remote areas

3. Effects of the Slave Trade a. Read this section and list the effects of the slave trade