New Patterns of Trade

Name: _________________________ COLUMBIAN EXCHANGE BALANCE OF TRADE JOINT STOCK COMPANIES MERCANTILISM

Main Idea The creation of colonies in the Americas and elsewhere led to the exchange of new types of goods, the establishment of new patterns of trade, and new economic systems in Europe.

LEQ: How did the creation of colonies lead to the exchange of new types of goods, new patterns of trade, and new economic systems?

FOCUS QUESTIONS? How did exploration result in a new exchange of plants and animals? What was mercantilism and how did it push the drive to establish colonies? How did global trade lead to the rise of capitalism in Europe?

Key Terms Columbian Exchange Mercantilism Balance of trade Subsidies Capitalism Joint-stock companies

On a scale of 1 to 10, with 10 being the highest, how much do you like chocolate?

Now that you have tasted chocolate, could you imagine your life without it?

Europeans only tasted chocolate for the first time in the 1500s!

Chocolate Drinks made by Aztecs Cortes actually found the Aztec chocolate to be bitter. The Aztec beverage did not include sugar or milk.

An Aztec noblewoman pouring a chocolate drink from the Codex Tudela.

Codex Tedula – Aztec Calendar

Dominican Friars Add Sugar Brought their beverage to Prince Philip of Spain. Chocolate drinks instantly become one of the favorite beverages of the Spanish nobility.

A European Love For Chocolate is Born! Chocolate remained a treat for the wealthy and drinking it was a sign of high status.

Columbian Exchange The arrival of colonists and their interaction with Native Americans led to sweeping cultural changes in both societies.

The Exchange of Goods Due to isolation, plants and animals evolved differently Europeans had never known foods like potatoes, corn, sweet potatoes, or turkeys. Native Americans had never known coffee, oranges, rice, wheat, sheep or cattle

Animals Proud to be an American Americas ~ llamas, turkeys and guinea pigs Europe ~ horses, donkeys, pigs, rabbits and cattle Proud to be an American

Effects of the Columbian Exchange Exchanged foods become staples. Increased nutrition Increased economic activity Increased occurrence of diseases

Case in point ~ Can you name three main dishes, that you might find on an Italian menu, that does not include tomatoes?

2nd case in point ~ China – Name two basic facts about China. Their massive population is due, in part, to the arrival of corn.

Population Growth China West Europe

New Diseases Native Americans had no natural resistance to European diseases such as small pox, measles, influenza, and malaria.

Diseases

Check for Understanding What were two lasting effects of Columbian Exchange?

Mercantilism An economic policy whereas a nation’s strength depended upon its wealth. EXAMPLE: A wealthy nation can build a strong military and can therefore protect and expand its influence.

Balance of Trade Acquired in two ways: 1. harvest gold and silver from the colonies 2. sell more goods than you buy

Creating a Favorable Balance of Trade Impose tariffs ~ reduces imports Increase exports ~ sell finished goods to nations for higher prices than the raw materials ~ ie, woolen cloth Control raw materials Encourage subsidies

EXAMPLE: Reducing Imports

Subsidies Government provided grants of money that helped to fund new businesses

There are two main reasons: Colonies PREDICT: Why would European mercantilists want to establish colonies? There are two main reasons: 1. Control natural resources 2. Establish a market for trade

Impact on Society Towns and cities grew Business activity increased Merchant class became wealthier, but most rural people remained poor

Capitalism Private individuals seeking profit carry out economic activity.

Joint Stock Companies Investors would pool their money together to fund expensive overseas business ventures

Example: British East India Company Founded in 1600 to import spices from Asia

Venn Diagram Name: _________________ Mercantilism Capitalism

ACROSTIC SUMMARY M E R C A N T I L S