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

2. TURN TO PAGE 26 IN YOUR NOTEBOOK
WE NEED TO DEFINE :
SYSTEM:
AN ORGANIZED SET OF RULES PROCEDURES AND LAWS.
ECONOMY:
THE TRADING, BUYING AND SELLING OF RAW MATERIALS FINISHED PRODUCTS AND SERVICES!

3. 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

4. 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

5. Mercantilism video clip

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

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)