1. EUROPE Changes their Economic System
MERCANTILISM
DOMINATES EUROPE AND HER COLONIES

2. Vocabulary Statements To Know: Textbook Pages 77-84
Complete on Notebook Pages 29-30
Charter was
2. Representative Assembly was
3. Mercantilism was
4. Export is
5. Import is
6. Balance of Trade is
7. Tariff is
8. Commerce is
9. Entrepreneur is
10. Joint-Stock Company was
11. Social Class is
12. Middle Class is
13. Capitalism is
14. Capital is
15. Free Enterprise is
16. Cottage Industry was
17. Columbian Exchange was

3. TURN TO PAGE 29 IN YOUR NOTEBOOK WE NEED TO DEFINE : SYSTEM IS
AN ORGANIZED SET OF RULES PROCEDURES AND LAWS.
ECONOMY IS
THE TRADING, BUYING AND SELLING OF RAW MATERIALS FINISHED PRODUCTS AND SERVICES!

4. MERCANTILISM
GOVERNMENT CONTROLLED ECONOMY WITH THE GOAL OF BUILDING UP A NATIONS BULLION
(GOLD & SILVER) BY TRADE !
1. Mother Country Claims Colony
Go Back To Mother Country
Back To Colony
2. Raw Materials & Gold
3. Finished Products Go

5. Mercantilism STEP BY STEP
THE GOVERNMENT IS IN CHARGE OF MERCANTILISM
Mercantilism STEP BY STEP
BUILD COLONIES (THEY SUPPLY RAW MATERIALS)
EXPORT MORE
IMPORT LESS
(THIS CREATES A FAVORABLE BALANCE OF TRADE)
3. FORCE TARRIFS (TAXES) ON FOREIGN GOODS TO KEEP THEM OUT OF YOUR COUNTRY
4. DO NOT ALLOW YOUR COLONY TO TRADE WITH OTHER NATIONS

6. CAPITALISM 4. MATERIALS (Raw) Economy which PEOPLE Not the Government
Own Property, Make Goods, and Buy and Sell them Freely
Build up of 1. MONEY ( CAPITAL) to INVEST (put into business)
2. MIDDLE CLASS
&
3. MARKETS ( New)
4. MATERIALS (Raw)

7. COMMERCIAL REVOLUTION
COMMERCE: Buying and selling goods in large amounts over long distances of travel
ENTREPRENURE: Wealthy businessman who risks money in order to make a profit
NEW SOCIAL CLASS: Middle Class made up of **Merchants (traders and businessmen) And
** Artisans (Craftsman or skilled worker)
EX: Barrel Maker, Blacksmith, Shoemaker, Woodworker, Rope Maker

8. STEP BY STEP: What are the 4 steps of MERCANTILISM? 1. BUILD COLONIES
2. EXPORTS ARE MORE THAN IMPORTS
3. FORCE TARRIFS ON FOREIGN GOODS
4. NO TRADING WITH OTHER COUNTRIES COLONIES

9. STEP BY STEP: What are the 4 components of CAPITALSIM?
1. MONEY ( Capital to Invest )
2. MATERIALS ( Ram Materials )
3. MARKETS ( New Markets )
4. MIDDLE CLASS ( Merchants & Artisians)

10. STEP BY STEP What are the 3 components of the COMMERCIAL REVOLUTION?
1. COMMERCE
2. ENTREPENURE
3. NEW SOCIAL CLASS ( Middle Class Merchants)