1. New Patterns of Trade

2. Name: _________________________
COLUMBIAN
EXCHANGE
BALANCE
OF TRADE
JOINT STOCK
COMPANIES
MERCANTILISM

3. Main Idea
The creation of colonies in the Americas and elsewhere led to the exchange of new types of goods, the establishment of new patterns of trade, and new economic systems in Europe.

4. LEQ:
How did the creation of colonies lead to the exchange of new types of goods, new patterns of trade, and new economic systems?

5. FOCUS QUESTIONS? How did exploration result in a new exchange
of plants and animals?
What was mercantilism and how did it push the drive to establish colonies?
How did global trade lead to the rise of capitalism in Europe?

6. Key Terms Columbian Exchange Mercantilism Balance of trade Subsidies
Capitalism
Joint-stock companies

7. On a scale of 1 to 10, with 10 being the highest, how much do you like chocolate?

8. Now that you have tasted chocolate, could you imagine your life without it?

9. Europeans only tasted chocolate for the first time in the 1500s!

10. Chocolate Drinks made by Aztecs
Cortes actually found the Aztec chocolate to be bitter.
The Aztec beverage did not include sugar or milk.

11. An Aztec noblewoman pouring a chocolate drink from the Codex Tudela.

12. Codex Tedula – Aztec Calendar

13. Dominican Friars Add Sugar
Brought their beverage to Prince Philip of Spain.
Chocolate drinks instantly become one of the favorite beverages of the Spanish nobility.

14. A European Love For Chocolate is Born!
Chocolate remained a treat for the wealthy and drinking it was a sign of high status.

15. Columbian Exchange
The arrival of colonists and their interaction with Native Americans led to sweeping cultural changes in both societies.

18. The Exchange of Goods
Due to isolation, plants and animals evolved differently
Europeans had never known foods like potatoes, corn, sweet potatoes, or turkeys.
Native Americans had never known coffee, oranges, rice, wheat, sheep or cattle

19. Animals Proud to be an American
Americas ~ llamas, turkeys and guinea pigs
Europe ~ horses, donkeys, pigs, rabbits and cattle
Proud to be an American

20. Effects of the Columbian Exchange
Exchanged foods become staples.
Increased nutrition
Increased economic activity
Increased occurrence of diseases

21. Case in point ~ Can you name three main dishes, that you might find on an Italian menu, that does not include tomatoes?

22. 2nd case in point ~ China – Name two basic facts about China.
Their massive population is due, in part, to the arrival of corn.

23. Population Growth
China
West Europe

24. New Diseases
Native Americans had no natural resistance to European diseases such as small pox, measles, influenza, and malaria.

25. Diseases

26. Check for Understanding
What were two lasting effects of Columbian Exchange?

27. Mercantilism
An economic policy whereas a nation’s strength depended upon its wealth.
EXAMPLE: A wealthy nation can build a strong military and can therefore protect and expand its influence.

29. Balance of Trade Acquired in two ways:
1. harvest gold and silver from the colonies
2. sell more goods than you buy

30. Creating a Favorable Balance of Trade
Impose tariffs ~ reduces imports
Increase exports ~ sell finished goods to nations for higher prices than the raw materials ~ ie, woolen cloth
Control raw materials
Encourage subsidies

31. EXAMPLE: Reducing Imports

32. Subsidies
Government provided grants of money that helped to fund new businesses

33. There are two main reasons:
Colonies
PREDICT: Why would European mercantilists want to establish colonies?
There are two main reasons:
1. Control natural resources
2. Establish a market for trade

34. Impact on Society Towns and cities grew Business activity increased
Merchant class became wealthier, but most rural people remained poor

35. Capitalism
Private individuals seeking profit carry out economic activity.

36. Joint Stock Companies
Investors would pool their money together to fund expensive overseas business ventures

37. Example: British East India Company
Founded in 1600 to import spices from Asia

38. Venn Diagram Name: _________________
Mercantilism Capitalism

39. ACROSTIC SUMMARY M E R C A N T I L S