Rise of Modern Capitalism Chapter 1 Section 2 Pages 90-97

Vocabulary Words  Capitalism: money invested in business to make more money  Joint-Stock Company: organizations of stockholders formed to share profits and risks of ventures  Mercantilism: theory that a nation becomes powerful by building up a supply of gold and silver  Columbian Exchange: global exchange of people, goods, technology, ideas and diseases

Essential Question #1  What were the voyages of discovery, locations of routes, and influences of cartography in the Americas?

Essential Question #2  What were the origins of modern capitalism?

How did Capitalism Develop?  Search for wealth led to capitalism an economic system in which money is invested to make profits  Commercial Revolution Roots of modern financial and banking life

Growth of Banking  1600’s: system of banking in financial trading ventures  Gov’t funded trading  Wealthy families set up banks

Changes in Banking  Persecuted Jews Financiers Importers shipbuilders  Gov’t supported banks

Joint-Stock Companies  Wanted to invest in exploration  Merchants combined resources  Raised funds for voyages  Dutch East Trading Company From Netherlands Monopoly (sole right) to trade Gov’t received taxes

A New Business Class  Entrepreneurs combined money, ideas, raw materials and labor to make profits

What is Mercantilism?  Led to colonies  1600’s economic policy  Built up supply of bullion (gold, silver)  Spain sent conquistadors to Americas Seized gold/silver of Incas and Aztecs  Exported more than imported Merchants made money Gov’t made taxes

Quest for Colonies  Columbian Exchange in the Americas Brought livestock Changed lives  Rivalry among nations  Colonies controlled by home country

Trade in Goods  Europeans planted grains from Europe, Asia  New Animals Pigs, chicken, sheep, cattle, horses  New Crops Acquired corn, potatoes, tomatoes, beans, chocolate, squash, chili peppers, peanuts, tobacco, sugar cane, tea, bananas, coffee

Slave Trade  Enslaved Africans planted and grew sugar cane