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Columbian Exchange. Columbian Exchange And… How did it change the World? What is the.

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Presentation on theme: "Columbian Exchange. Columbian Exchange And… How did it change the World? What is the."— Presentation transcript:

1 Columbian Exchange

2 Columbian Exchange And… How did it change the World? What is the

3 Impact on Native Americans Europeans were learning of the profitability of the plantation system – relying on what? –Economic benefit of using local forced labor Disease – Europeans, unknowingly brought measles, mumps, chickenpox, smallpox, typhus and others. The local people had no built-up natural immunity to these diseases yet.

4 Impact on Africans With decline of native work force, labor was needed from elsewhere. Slave trade exploded, especially in W. Africa Over the next 300 years ( ) appx 10 million people were taken

5 Impact on Europeans Europeans began to cross the Atlantic creating one of the largest voluntary migrations in world history. Overseas expansion inflamed national rivalries in Europe causing conflict. –Treaty of Tordesillas, 1494 (Spain Vs. Portugal) Growth of trade markets completely changed the world FOREVER!

6 The introduction of beasts of burden to the Americas was a significant development from the Columbian Exchange. The introduction of the horse provided people in the Americas with a new source of labor and transportation. Voyages launched large-scale contact between Europe and Americas. Interaction with Native Americans led to sweeping cultural changes. Contact between the two groups led to the widespread exchange of plants, animals, and diseasethe Columbian Exchange. Plants, animals developed in very different ways in hemispheres Europeansno potatoes, corn, sweet potatoes, turkeys People in Americasno coffee, oranges, rice, wheat, sheep, cattle The Exchange of Goods The Columbian Exchange Arrival of Europeans in Americas changed all this Previously unknown foods taken back to Europe Familiar foods brought to Americas by colonists Sharing Discoveries



9 Different Foods Exchange of foods, animals had dramatic impact on later societies Over time crops native to Americas became staples in diets of Europeans Foods provided substantial nutrition, helped people live longer Italian Food Without Tomatoes? Until contact with Americas, Europeans had never tried tomatoes Most Europeans thought tomatoes poisonous By late 1600s, tomatoes had begun to be included in Italian cookbooks Economics and Gastronomics Activities like Texas cattle ranching, Brazilian coffee growing not possible without Columbian Exchange; cows, coffee native to Old World Traditional cuisines changed because of Columbian Exchange Effects of the Columbian Exchange

10 The Exchange can be positive or negative in its effects In the exchange that started along the coast of Newfoundland and was made widespread by Columbus, disease was the most negative for the Native American population Fatality rate over a period of two to three generations was 95% for many tribal groups In some cases, as in the Mohegans case, the fatality rate could be 100 percent

11 Europeans believed that it was Gods will that Indians died No germ theory at the time of contact. Illness in Europe was considered to be the consequence of sin Indians, who were largely heathen or non-Christian were regarded as sinners thus subject to illness as a punishment

12 Devastating Impact Native American population continued to decline for centuries Inca Empire decreased from 13 million in 1492 to 2 million in 1600 North American population fell from 2 million in 1492 to 500,000 in 1900but disease not only factor in decrease of population Intermittent warfare, other violence also contributed The Introduction of New Diseases Native Americans had no natural resistance to European diseases Smallpox, measles, influenza, malaria killed millions Population of central Mexico may have decreased by more than 30 percent in the 10 years following first contact with Europeans

13 Old World Diseases European disease was particularly virulent Smallpox, measles, diphtheria, whooping cough, chicken pox, bubonic plague, scarlet fever and influenza were the most common diseases Nearly all of the European diseases were communicable by air and touch. The pathway of these diseases was invisible to both Indians and Europeans

14 Effects Widespread Effects of Columbian Exchange felt not only in Europe, Americas China –Arrival of easy-to-grow, nutritious corn helped population grow tremendously –Also a main consumer of silver mined in Americas Africa –Two native crops of Americascorn, peanutsstill among most widely grown Scholars estimate one-third of all food crops grown in world are of American origin

15 Wealth measured by amount of gold, silver possessed by nation Mercantilists believed there was fixed amount of wealth in world For one nation to become wealthier, more powerfulhad to take wealth, power away from another nation Mercantilism led to intense competition between nations Intense Competition Founding of colonies, new goods in Europe led to significant changes 1500s, Europeans developed new economic policy, mercantilism Nations strength depended on its wealth Wealthy nation had power for military and expanded influence New Economic Policy Mercantilism

16 Mercantilists built wealth two ways extract gold, silver from mines at home, in colonies; sell more goods than it bought from foreign countries, creating favorable balance of trade With favorable balance of trade, country received more gold, silver from other nations than it paid to them Increased its power; weakened foreign competitors To achieve favorable balance of trade, could reduce amount of imports by placing tariffs on goods Importer paid tariff, added cost to price of good Imported goods more expensive, discouraged people from buying Imports Encourage exports that could sell for higher prices than raw materials Countries encouraged manufacturing and export of manufactured goods Governments provided subsidies to help start new industries Exports Balance of Trade

17 Controlling Sources Third approach for favorable balance of trade, Controlling Sources Nation that controlled own sources would not need to import from competing nations Why important –Country did not need to spend own money to obtain raw materials –Foreign countries considered rivals, might become active enemy, cut off supply of raw materials European nations worked to become more self-sufficient Nations began to establish colonies


19 Building colonial empires essential to mercantilist system European powers wanted to establish colonies –To control sources of raw materials –To provide new markets for manufactured goods To mercantilist, colonies existed only to benefit home country Colonies Monarchs restricted economic activities in colonies Colonists could not sell raw materials to other countries Could not buy manufactured goods from other nations Strict laws forbade colonies from manufacturing goods Forced to buy only from home country Strict Laws Colonies

20 Summarize What were the main principles of mercantilism? Answer: nation's strength depended upon its wealth; needed a favorable balance of trade

21 Commercial Revolution What: The transition (change) from Mercantilism & then to Capitalism IS the COMMERCIAL REVOLUTION When: 16 th -17 th centuries Who/Where: Europeans & European countries & colonies Why?: changes in commerce (trade) & money making methods Changes in the power structure btwn countries Why Care?:Influenced todays financial dealings (the way we do business)

22 Commercial Revolution CAUSE: –new wealth + dramatic growth in overseas trade = new business and trade practices EFFECTS: –set the stage for the development of CAPITALISM –Basis of todays financial practices

23 Increasing trade between Europe and colonies created new business and trade practices during the 1500s and 1600s. These practices would have a great impact on the economies of European nations. In capitalism, most economic activity carried on by private individuals, organizations in order to seek profit During this time, capitalism expanded Capitalism Emerges Individuals amassed great trade fortunes Merchants supplied colonists with European goods Returned products, raw materials Overseas TRADE Overseas trade made many merchants rich Wealth enabled them to invest in more business ventures Business activity in Europe increased greatly Increased BUSINESS ACTIVITY The Rise of Capitalism

24 Money Supply Increase of money supply another factor in higher prices (INFLATION) Shiploads of gold, silver flowed into Europe from Americas to be made into new coins Over time, increase of money in circulation pushed prices for goods still higher Rising Prices (INFLATION) Investors took risks of investing in overseas trade because of inflation Inflation: steady increase in prices Demand for goods increased due to growing population, scarcity of goods; rising demand drove prices higher

25 New Ventures Overseas business ventures often too expensive for individual investors Investors began pooling money in joint-stock companies Shares Profit, loss based on number of shares owned If company failed, investors lost only amount invested Joint-Stock Companies Investors bought shares of stock in company If company made profit, each shareholder received portion Financing Colonies British East India Company, one of first joint-stock companies 1600, imported spices from Asia Others formed to bear cost of establishing colonies A New Business Organization

26 So… What is CAPITALISM Economic System based on: –private ownership & –investment of wealth for profit –Free Trade Cause: overseas colonization & trade = lots of merchants getting RICH! –And… they continued to invest in trade to get RICHER (increase profits) –AND then… they re-invested more to get even RICHER!

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