1. Chapter 20
Section 4

2. Objective
Describe the Columbian Exchange, global trade, and mercantilism.

3. The Columbian Exchange
the transfer of plants, animals, and diseases between the Old World and the Americas following Columbus's arrival in the Caribbean in 1492.

5. The Columbian Exchange
Led to a population increase because of the increase of food products
Led to the migration of millions of people
Benefited who?
Europeans and the Colonies
Catastrophic for who?
Natives

6. Colonists/explorers jump-started a process of evolution that hadn’t yet reached the New World
Prematurely merged New World with Old World
Before, New and Old World evolved/progressed in isolation

7. Global Trade Found new wealth  led to more oversea trade
Rise in business, 16th & 17th centuries

8. New Economic Systems
Capitalism  an economic system based on private ownership and the investment of resources for profit
Governments no longer only ones with great wealth
Merchants gained $$ and invested it
Mercantilism  a country’s power depends mainly on its wealth
Goal of every nation was to gain as much wealth as possible
Colonies were seen as places to take resources from
Colonies were a supplier and provided a market

9. Economic Revolution Changes European Society
Growth of towns
Very wealthy merchants
Increased nation’s wealth  led to creation of national identity
Disadvantages:
Much of population still lived in rural areas and remained poor

10. Governments made a lot of money off the colonies, but it also cost a lot to maintain so many governments
Government backed monopolies created a greater divide between the rich and the poor
A strong European middle class was created, but the laborers of the factories and mines lived wretched lives