1. Age of Exploration: New Patterns of Trade Mr. Snell HRHS

2. The Columbian Exchange Post-Columbus lead to large scale contact between Europe & America. Contact between Native Americans & Europeans colonialists that led to widespread exchange of plants, animals, and disease.

4. Exchange of Goods Plants and animals developed in different ways. Europeans had never known foods like: potatoes, corn,sweet potatoes, or turkey. Native Americans had never known: coffee, oranges, rice, wheat, sheep, or cattle. Items were exchanged from the old world (Europe) to the new world (America), and vice versa

5. Not just food… Horses were introduced to America. – Provided new source of transportation & labor.

6. Effects of the Columbian Exchange Crops like corn & potatoes became staple foods in Europe. Provided solid nutrition = people live longer. New Industry – Brazilian Coffee Growing or Texas Cattle Industry New cuisine – Imagine Italian food without tomatoes? – People first thought they were poisonous in Europe.

7. Effects cont. Corn in China allowed for massive population sustainment. In Africa…peanuts and corn are still some of their most widely grown crops to date. 1/3 of all crops grown around the world are of American origin.

8. New Disease! Europeans brought them to the Americas. Natives had no resistance. Smallpox, measles, malaria, influenza killed millions of Native Americans. First diseases were most severe. – 1518 Saint Domingo had ½ populated dead. – Central Mexico lost 1/3 of population in 10 years of being conquered. Warfare and violence also contributed to death.

9. Mercantilism Economic policy stating a nation’s strength depended on its wealth. Wealthy nations could build a strong military and expand its influence. – Measured by gold and silver possessed. Believed in a fixed amount of wealth in the world. – Led to nations believing they had to take power from other nations.

10. Favorable Balance of Trade Selling more goods than you buy. Increases power and weakens foreign competitors. Became a central goal to mercantilist countries.

11. 3 ways to Achieve Favorable Balance of Trade 1.Reduce amount of goods imported by using tariffs. Tariffs = import taxes 2.Encourage exports that can sell for high prices. – Manufactured goods sell > raw material cost – Subsidies – government grants of money were used to start new businesses. 3.Control overseas sources of raw materials and precious metals.

12. Colonies Were essential to the Mercantile system. – Sources of raw materials – New markets for manufactured goods Mercantilist View – Colonies existed only to benefit the home countries. Monarch Restrictions: – No colonies allowed selling raw materials to anyone other than home nation. – No colonies allowed to manufacture goods

13. Impact on Society European towns & cities grew. Wealthy merchant class emerged. – Some social mobility, still many people were poor.

14. The Rise of Capitalism Economic System where private individuals or organizations carry out activity in order to seek a profit. – Individuals amassed huge fortunes overseas. Merchants supplied colonists with goods from Europe and brought back raw materials to make more.

15. Prices Rise! Willing risk by investors Inflation – steady increase in prices. Demand for goods increased. Scarcity of goods Rising population Increase in amount of money circulation in Europe.

16. New Business Organization Overseas business was expensive. – Sometimes too much for 1 investor Joint-Stock Company – investors buy shares of stock, or shares of the company. – If company profits, every shareholder profits. – If failed, they would only lose their invested amount. British East India Company – imported spices from Asia.

17. Anti-Capitalism Ad