1. Commercial Revolution: Economics changing from Traditional Economies to Market Economies

2. During the Middle Ages… / Economies were self sufficient and traditional. Most people grew own crops and created own goods in manor system. Does this happen today?

3. How had life changed during the Middle Ages? / Man had found better way to produce food and be more efficient / 3 field system / Horse power / Iron Plow All this lead to a surplus in food. Which means? / Man had found better way to produce food and be more efficient / 3 field system / Horse power / Iron Plow All this lead to a surplus in food. Which means?

4. / Impact of Crusades

5. / Crusades opened Europeans eyes to goods of the Islamic (Muslim Empire)- trade routes to East began / As a result this increased trading between East and West---> people began to trade for a living and produce goods / Growth of businesses / (people could survive because others were producing enough food) / This is known as the COMMERCIAL REVOLUTION!! / Crusades opened Europeans eyes to goods of the Islamic (Muslim Empire)- trade routes to East began / As a result this increased trading between East and West---> people began to trade for a living and produce goods / Growth of businesses / (people could survive because others were producing enough food) / This is known as the COMMERCIAL REVOLUTION!!

6. Results: Beginning of Modern Banking / People began to exchange credits (money) in exchange for goods and services / Banks were set up to stabilize money source / People began to exchange credits (money) in exchange for goods and services / Banks were set up to stabilize money source

7. Results: / People began to settle towns and rely on trading and business for a living--> Town and cities grow / Feudalism system declines / Growth of Middle Class / Money becomes source of power / Became foundation of modern day capitalism / People began to settle towns and rely on trading and business for a living--> Town and cities grow / Feudalism system declines / Growth of Middle Class / Money becomes source of power / Became foundation of modern day capitalism

8. If money = power, how can a country get more $$$? / Get more resources--> make more goods--> trade more -->make more $$---> have more power / This concept will help lead European leaders into Age of Exploration and Mercantilism System / Get more resources--> make more goods--> trade more -->make more $$---> have more power / This concept will help lead European leaders into Age of Exploration and Mercantilism System

9. Age of Exploration / European countries wanted to find an easier way to trade with East so Kings hired sailors to find a new, quicker method to trade. / Avoid Middle Man (Muslims) and price increase / European countries wanted to find an easier way to trade with East so Kings hired sailors to find a new, quicker method to trade. / Avoid Middle Man (Muslims) and price increase

10. Explorers / Vasco DeGama / Magellan / Columbus / What were they looking for? / Routes to the East / Vasco DeGama / Magellan / Columbus / What were they looking for? / Routes to the East

12. Exploration / Leads to the establishment of colonies in the New World and Mercantilism

13. What is Mercantilism? Countries power depends on wealth

14. Why would they do this? / Mother countries would use colonies for resources. Take resources and manufacture them into a finished product. Then sell finished product to colony. / Example: Take cotton from US --> ship to England----> England turns cotton into clothes--> sell clothes to US / England gets more $$$ and power / Mother countries would use colonies for resources. Take resources and manufacture them into a finished product. Then sell finished product to colony. / Example: Take cotton from US --> ship to England----> England turns cotton into clothes--> sell clothes to US / England gets more $$$ and power

16. Columbian Exchange

17. Led to the development of Modern Day Capitalism / What is a Market economy again? / Individuals begin making decisions / Businesses Grow / Adam Smith and the “Invisible Hand” / What is a Market economy again? / Individuals begin making decisions / Businesses Grow / Adam Smith and the “Invisible Hand”