1. Rise of Modern Capitalism

2. What is Capitalism? Economic system where money is invested in businesses Grew due to overseas exploration..need money As cities grew>shift to national economy

3. Banks Money needed for overseas exploration and trade ventures Early bankers – Deposits, loans, transfer money overseas, expand throughout Europe Changed in 1600’s – Government grant charters..run by government Expanded services..issue banknotes, checks, coins, currency exchange

4. Joint-stock companies – Individuals join together – Sell stock/shares Rise of entrepreneurs – Goal to make money..profits – Combine money, labor, raw materials – “cottage industry” work done in home entrepreneurs>>raw material>>sell product>> profit or loss?????????? What was the advantage of the joint-stock company?

5. Changing 1600’s Trade routes move west..help nations along the Atlantic Ocean Mercantilism: nations increase bullion.. increase wealth – Export good versus import goods – Government increase wealth by selling monopolies(control of a industry to one person) and tariffs

6. Increase in territory Establish colonies – Produce goods home country does not have (limit imports)

7. Global Exchange Columbian Exchange Trade of people, goods, technology, ideas, diseases throughout the world Changed way of life – Grains – Animals (chickens,horses) – Food (corn, potatoes)

8. Exploration connected parts of the world that had no previous contact Movement of people affected other cultures – Language, religion, values, weapons, diseases

9. Slave trade Sugarcane production grew in the Americas – Need for people to work the plantations West Indies exported surgarcane – First Native Americans – African Americans Suggested by Bartolome de Las Casas Spain from west Africa to Americas Portugal to Brazil