1. The Columbian Exchange & Global Economics
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The Columbian Exchange & Global Economics

2. Columbian Exchange
Columbian Exchange = global trade of foods, plants, & animals during colonization of Americas
Corn, potatoes, tomatoes sent from Americas to world
Horses, sheep, cattle, pigs, bananas brought to Americas

3. Capitalism
Capitalism = economy based on private ownership & investment for profit
People created businesses
Businesses made money
Money reinvested in the business
Increase in economy leads to inflation
Inflation = steady rise in price of goods

4. Joint-stock Companies
Stock = pieces of a company
Stock sold to raise capital ($$) for company
Each stockholder owned a part of the company
Stockholders only responsible for $$, not daily operations
Risks & profits shared between all stockholders

5. Mercantilism Mercantilism = country’s power depended on its wealth
Wealth allows a country to build navy, purchase goods
Favorable balance of trade needed
Export more than import
Goal = self-sufficiency