1. The Colombian Exchange & Global Trade
Section 4-4

2. The Colombian Exchange
The global transfer of goods during the colonization of the Americas
Tomatoes, squash, pineapples, tobacco, cacao beans, and the turkey came from the Americas
The two most important goods were corn and potatoes (inexpensive and highly nutritious)

3. The Colombian Exchange cont.
The Americas got livestock (cows, goats, pigs, horses) and diseases from Europe
Grains (wheat, barley, and oats), yams, and bananas come from Africa and Asia
This is significant because of the improved lifestyles provided by the new goods that were available through the exchange
The diseases killed millions of Native Americans

4. New Business
Capitalism - an economic system based on private ownership and the investment of resources in order to turn a profit
Joint stock company – investors buying shares of a company, they can pool their resources in order to accomplish more

5. Effects of New Business
As a result of new business practices most nations saw an increase in their money supply, this led to inflation (higher prices because of more demand than supply)
The Middle class business men began to emerge as a dominant force in society

6. Mercantilism
And economic policy that stated that a nation’s power depended on its ability to gain wealth.
Favorable balance of trade - when nation sells more goods than it buys
Colonies provide raw materials that home country uses to make goods