THE COLUMBIAN EXCHANGE

The Columbian Exchange was the transfer of

During the colonization of the Americas

FOOD, PLANTS, ANIMALS, DISEASES

It was called the Columbian Exchange because it started with

Both Europeans & Native Americans were introduced to new foods & animals

During the colonization of the Americas

COLUMBUS

From America to Europe:

CORN, POTATOES, SQUASH, TOMATOES, TURKEY, TOBACCO, PINEAPPLES

From Europe to America:

BANANAS, WHEAT, RICE, HORSES, PIGS, SUGAR, GRAPES

THE COMMERCIAL REVOLUTION

The Commercial Revolution refers to changes in

that began around the and continued on through the Age of Exploration

It the economies of Europe

TRADE & BUSINESS1400’

s

TRANSFORMED

CAPITALISMOne aspect of the Commercial Revolution was the of capitalism

Capitalism: economic system based on ownership and of wealth for profit

GROWTH

PRIVATEINVESTMENT

CAPITALISMDue to overseas colonization and trade, were no longer the sole owners of wealth – so too were Merchants formed a new type of business= CompanyJoint-stock company – involved a number of people pooling their wealthRequired large amounts of - needed a number of investorsInvestors their money in hopes of large profitsCapitalism came to be known as the

GOVERNMENTS/NOBLES MERCHANT

S JOINT-STOCK

INVESTORSCAPITAL

FREE ENTERPRISE SYSTEM

RISKED

MERCANTILISMMercantilism: economic theory that a country’s power depended on its

Under mercantilism a country needed colonies to provide wealth:

materials (wood, furs) to make goods

Colonies were &

Goal under mercantilism – become

It was important to have a good

(sell) more than (buy)

WEALTH

SILVER & GOLD

RAW

FINISHED

SUPPLIERS

MARKETS

SELF-SUFFICIENT

BALANCE OF TRADE

EXPORT IMPORT