1. The Columbian Exchange and Global Trade
Chapter 4
Section 4

2. Main Ideas
The colonization of the Americas introduced new items into the Eastern and Western hemispheres.
The global exchange of goods permanently changed Europe, Asia, Africa and the Americas.

3. Introduction
The colonization of the Americas prompted both forced and voluntary migration of millions of people.
New and powerful societies were developed.
Colonization resulted in the exchange of new items that greatly influenced the lives of people throughout the world.
New wealth from the Americas led to new business and trade practices in Europe.

4. The Columbian Exchange
Global transfer of foods, plants and animals during the colonization of the Americas.
Ships brought back items from the Americas that no one had seen before.
Tomatoes, squash, pineapples, tobacco, turkey…
Most importantly, potatoes & corn
Inexpensive & nutritious

5. To America From Europe From Africa Wheat, rice, barley and oats
Livestock
Horses, cattle, sheep and pigs
From Africa
Bananas, black-eyed peas, yams
Wheat, rice, barley and oats
Disease

6. Dramatically changed the economic atmosphere of Europe.
Global Trade
New wealth and growth in overseas trade led to a wave of new business and trade practices in Europe.
Dramatically changed the economic atmosphere of Europe.

7. Rise of Capitalism
Capitalism – economic system based on private ownership and the investment of resources, such as money, for profit.
Governments are no longer sole owners of great wealth.
Merchants and traders became wealthy.
Result?
Businesses grew and flourished.

8. Inflation
Increase in economic activity led to increase in nation’s money supply.
Inflation = steady rise in the price of goods.
Occurs when people have more money to spend and demand more goods and services.
Supply is less than demand = increase in price.

9. Joint Stock Companies
Business venture that developed during this period.
Works like a modern-day corporation.
Investors buy shares of stock in a company.
Number of people combining their wealth for a common purpose.
American colonization
Failed = lost contributions
Thrived = shared profits
JSC established Jamestown

10. The Growth of Mercantilism
Theory – country’s power depended mainly on its wealth.
Countries should do everything possible to acquire more wealth.
Let’s look at page 140…

11. Balance of Trade Two ways to increase a country’s wealth:
Obtain as much gold and silver as possible.
Establish a favorable balance of trade.
Sell more goods than purchased.
Basically, become self- sufficient.
Colonies provided gold & silver.
Also, raw materials like wood and fur.