2Columbian Exchange And… How did it change the World? What is the
3Impact on Native Americans Europeans were learning of the profitability of the plantation system – relying on what?Economic benefit of using local forced laborDisease – Europeans, unknowingly brought measles, mumps, chickenpox, smallpox, typhus and others.The local people had no built-up natural immunity to these diseases yet.
4Impact on AfricansWith decline of native work force, labor was needed from elsewhere.Slave trade exploded, especially in W. AfricaOver the next 300 years ( ) appx 10 million people were taken
5Impact on EuropeansEuropeans 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 worldFOREVER!
6The Columbian Exchange 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 disease—the Columbian Exchange.Plants, animals developed in very different ways in hemispheresEuropeans—no potatoes, corn, sweet potatoes, turkeysPeople in Americas—no coffee, oranges, rice, wheat, sheep, cattleThe Exchange of GoodsArrival of Europeans in Americas changed all thisPreviously unknown foods taken back to EuropeFamiliar foods brought to Americas by colonistsSharing DiscoveriesThe 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.
9Effects of the Columbian Exchange Different FoodsExchange of foods, animals had dramatic impact on later societiesOver time crops native to Americas became staples in diets of EuropeansFoods provided substantial nutrition, helped people live longerEconomics and GastronomicsActivities like Texas cattle ranching, Brazilian coffee growing not possible without Columbian Exchange; cows, coffee native to Old WorldTraditional cuisines changed because of Columbian ExchangeItalian Food Without Tomatoes?Until contact with Americas, Europeans had never tried tomatoesMost Europeans thought tomatoes poisonousBy late 1600s, tomatoes had begun to be included in Italian cookbooks
10The 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 populationFatality rate over a period of two to three generations was 95% for many tribal groupsIn some cases, as in the Mohegans case, the fatality rate could be 100 percent
11Europeans believed that it was God’s will that Indians died No germ theory at the time of contact.Illness in Europe was considered to be the consequence of sinIndians, who were largely “heathen” or non-Christian were regarded as sinners thus subject to illness as a punishment
12The Introduction of New Diseases Native Americans had no natural resistance to European diseasesSmallpox, measles, influenza, malaria killed millionsPopulation of central Mexico may have decreased by more than 30 percent in the 10 years following first contact with EuropeansDevastating ImpactNative American population continued to decline for centuriesInca Empire decreased from 13 million in 1492 to 2 million in 1600North American population fell from 2 million in 1492 to 500,000 in 1900—but disease not only factor in decrease of populationIntermittent warfare, other violence also contributed
13Old World Diseases European disease was particularly virulent Smallpox, measles, diphtheria, whooping cough, chicken pox, bubonic plague, scarlet fever and influenza were the most common diseasesNearly all of the European diseases were communicable by air and touch.The pathway of these diseases was invisible to both Indians and Europeans
14Effects WidespreadEffects of Columbian Exchange felt not only in Europe, AmericasChinaArrival of easy-to-grow, nutritious corn helped population grow tremendouslyAlso a main consumer of silver mined in AmericasAfricaTwo native crops of Americas—corn, peanuts—still among most widely grownScholars estimate one-third of all food crops grown in world are of American origin
15Mercantilism New Economic Policy Intense Competition Founding of colonies, new goods in Europe led to significant changes1500s, Europeans developed new economic policy, mercantilismNation’s strength depended on its wealthWealthy nation had power for military and expanded influenceNew Economic PolicyWealth measured by amount of gold, silver possessed by nationMercantilists believed there was fixed amount of wealth in worldFor one nation to become wealthier, more powerful—had to take wealth, power away from another nationMercantilism led to intense competition between nationsIntense Competition
16Balance of Trade Imports Exports 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 tradeWith favorable balance of trade, country received more gold, silver from other nations than it paid to themIncreased its power; weakened foreign competitorsTo achieve favorable balance of trade, could reduce amount of imports by placing tariffs on goodsImporter paid tariff, added cost to price of goodImported goods more expensive, discouraged people from buyingImportsEncourage exports that could sell for higher prices than raw materialsCountries encouraged manufacturing and export of manufactured goodsGovernments provided subsidies to help start new industriesExports
17Controlling Sources Third approach for favorable balance of trade, Nation that controlled own sources would not need to import from competing nationsWhy importantCountry did not need to spend own money to obtain raw materialsForeign countries considered rivals, might become active enemy, cut off supply of raw materialsEuropean nations worked to become more self-sufficientNations began to establish colonies
19Building colonial empires essential to mercantilist system ColoniesBuilding colonial empires essential to mercantilist systemEuropean powers wanted to establish coloniesTo control sources of raw materialsTo provide new markets for manufactured goodsTo mercantilist, colonies existed only to benefit home countryColoniesMonarchs restricted economic activities in coloniesColonists could not sell raw materials to other countriesCould not buy manufactured goods from other nationsStrict laws forbade colonies from manufacturing goodsForced to buy only from home countryStrict Laws
20What were the main principles of mercantilism? SummarizeWhat were the main principles of mercantilism?Answer:nation's strength depended upon its wealth;needed a favorable balance of trade
21Commercial Revolution What: The transition (change) from Mercantilism & then to Capitalism IS theCOMMERCIAL REVOLUTIONWhen: 16th -17th centuriesWho/Where: Europeans & European countries & coloniesWhy?: changes in commerce (trade) & money making methodsChanges in the power structure btwn countriesWhy Care?:Influenced today’s financial dealings (the way we do business)
22Commercial Revolution CAUSE:new wealth + dramatic growth in overseas trade = new business and trade practicesEFFECTS:set the stage for the development of CAPITALISMBasis of today’s financial practices
23The Rise of CapitalismIncreasing 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.Individuals amassed great trade fortunesMerchants supplied colonists with European goodsReturned products, raw materialsOverseas TRADEIn capitalism, most economic activity carried on by private individuals, organizations in order to seek profitDuring this time, capitalism expandedCapitalism EmergesOverseas trade made many merchants richWealth enabled them to invest in more business venturesBusiness activity in Europe increased greatlyIncreasedBUSINESS ACTIVITY
24Rising Prices (INFLATION) Investors took risks of investing in overseas trade because of inflationInflation: steady increase in pricesDemand for goods increased due to growing population, scarcity of goods; rising demand drove prices higherMoney SupplyIncrease of money supply another factor in higher prices (INFLATION)Shiploads of gold, silver flowed into Europe from Americas to be made into new coinsOver time, increase of money in circulation pushed prices for goods still higher
25A New Business Organization New VenturesOverseas business ventures often too expensive for individual investorsInvestors began pooling money in joint-stock companiesJoint-Stock CompaniesInvestors bought shares of stock in companyIf company made profit, each shareholder received portionSharesProfit, loss based on number of shares ownedIf company failed, investors lost only amount investedFinancing ColoniesBritish East India Company, one of first joint-stock companies1600, imported spices from AsiaOthers formed to bear cost of establishing colonies
26So… What is CAPITALISM Economic System based on: private ownership &investment of wealth for profitFree TradeCause: 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!