1. Exploration, Colonization, and the Columbian Exchange

2. New Trade Routes sought by Europeans
1500s: Trade controlled by Arab & Venetian merchants
Europeans wanted a cheaper, quicker route to Asia (avoiding conflict)

3. Changing Ways of Life Age of Exploration expands European economy
Search for wealth led to the rise of modern capitalism— money invested in business to make profits.

4. New Inventions assisting in exploration
Compass
Astrolabe
Better map making
Better boats & sails

6. Commercial Revolution
1500s Banking (big business) Medici family (Florence)
1600s “nation” replaces the city and the village as the basis for economy.
Banking families replaced by government chartered banks.

7. Increase in Wealth and Currency
Gold and silver flowed to Europe (increasing wealth)
Money was coined and widely used in currency for trade purposes

8. Bank Services (run by gov’t)
Loans
Deposits
Banknotes
Checks
Exchanging of currencies

9. Wealthy Merchants
Joint-stock companies—enable large & small investors to share profits and risks of a trading voyage (very stable)
Gov’t supported joint-stock companies
Have the power to make war, seize foreign ships, establish colonies, coin money
Gov’t receives duties (taxes) on imported goods
Ex: Dutch East India Company—monopoly on trade with Africa and East Indies

10. Increase in Money (change in business goals)
Rise of entrepreneurs—put up capital with risk, but could make a lot of money
Increase in trade
Portugal, England, Spain, and Netherlands because they had largest colonial empires
Trade routes move westward to Africa and the Americas

11. Mercantilism A state’s power depended on its wealth
Measured by amount of bullion
Nations gained wealth by acquiring gold & silver (Incas and Aztecs—Spain)
Trade: more goods exported than imported, i.e. create a balance of trade.
Gov’ts sold monopolies in certain industries
Colonial holdings—source of raw materials and new markets

12. Columbian Exchange
Definition: Global transfer of foods, plants and animals during the colonization of the Americas.
Exchanging foods allowed items such as potatoes and corn to become part of the Europeans’ staple diet.

13. What if it hadn’t happened?
“Before the Columbian Exchange, there were no oranges in Florida, no bananas in Ecuador, no paprika in Hungary, no tomatoes in Italy, no pineapples in Hawaii, no rubber trees in Africa, no cattle in Texas, no burros in Mexico, no chili peppers in Thailand and India, no cigarettes in France and no chocolate in Switzerland. Even the dandelion was brought to America by Europeans for use as an herb.”

14. These foods helped people live healthier and longer lives— population boost
Livestock Introduced:
New World Old World
Horses turkeys
Cattle llamas
Pigs alpacas
Sheep guinea pigs
Goats
Chickens

15. Diseases Introduced: New World Old World Small pox, Syphilis Measles
Chicken Pox
Malaria
Yellow fever
Influenza
Common cold
Typhus
Diphtheria
Whooping cough
Cholera

17. Triangular Trade *Enslaved people from Africa came to the New World
*Manufactured good came from Europe to the New World.
*Raw materials from the Americas went to Europe

18. The Atlantic Slave Trade in Two minutes

19. Effects of Global Exchange
Europe’s population exploded
425 million in 1500
545 million in 1600
610 million in 1700
720 million in 1750
900 million in 1800
Population moves to centers of trade
Trade expansion=>exchange of cultures through goods, people, technologies, ideas, and diseases.

20. (Continued) Peoples demand for goods & services rise
Trading globally leads to increased movement of people seeking wealth, or fleeing economic distress and religious persecution

21. Expansion of Trade PROS CONS
Spread of European language, culture, and religion (Christian missionaries)
European interest in arts, style, and foods, esp. in Asia
Drastic decline in Native American population
Africans forcibly removed to Americas as slaves