Unit 3 Section 8 Age of Exploration Changes in Europe Unit 3 Section 8 Age of Exploration TYWL: Analyze the causes for exploration and the effects of increased global interaction and trade between the nations in Europe, Asia, Americas, and Africa . Analyze colonization in terms of the desire for access to resources and markets as well as the consequences on cultures, population, & environment. I can: understand how the desire for wealth, resources, markets, and the Crusades, fueled by advances in technology, leads to global exploration, exchange of goods & ideas are contributing factors to mercantilism , capitalism and colonization.

Question of the Day In Ming China, why did European traders pay for Chinese silks and porcelains in gold or silver instead of exchanging trade goods? a. The Chinese did not want inferior European trade goods. b. The Europeans had more gold and silver than trade goods. c. The Chinese offered lower prices when paid in gold or silver. d. Gold and silver was easier for the Europeans to transport.

The Columbian Exchange When Columbus returned to Spain in 1493, he brought w/ him “new” plants (tomatoes, pumpkins, peppers, corn & potatoes) & animals. Later that year, he returned to the Americas w/ some 1,200 settlers & a collection of European animals (cattle, goats, pigs, chickens, horses & donkeys) & plants (Wheat, grapes, bananas & sugar cane). In this way, Columbus began a vast global exchange that would have a profound effect on the world.

A Commercial Revolution The opening of direct links w/Asia, Africa, & the Americas had far-reaching economic consequences for Europeans. Prices began to rise in Europe, as part of the cycle of inflation. European inflation had several causes: As the pop. grew, the demand for goods & services rose. Because goods were scarce, sellers could raise their prices. The increased flow of gold & silver from the Americas led to more money in circulation.

Expanded trade & the push for overseas empires spurred the growth of European capitalism, the investment of money to make a profit. Entrepreneurs & capitalists made up a new business class. Together they helped change the local European economy into an international trading system. Joint Stock Company Allowed people to pool large sums of capital needed for investment & overseas adventure.

Mercantilism: European monarchs adopted a new economic policy, known as mercantilism, aimed at strengthening their national economies. According to mercantilism, a nation’s real wealth is measured in its gold & silver treasure. To build its supply of gold & silver, a nation must export more goods than it imports.

Overseas empires & colonies existed for the benefit of the parent nation. Rulers needed to adopt policies to increase national wealth & gov’t revenues. To achieve these goals, European gov’ts passed strict laws regulating trade with their colonies. Exploited natural resources, built roads, & backed new industries. sold monopolies to large producers in certain areas. Imposed tariffs, or taxes on imported goods.

The impact of economic change depended on a person’s social class. Merchants who invested in overseas ventures acquired wealth. Nobles, whose wealth was in land, were hurt by the price revolution. Hired workers in towns & cities faced poverty & discontent when their wages did not keep up w/ inflation. Peasants, the majority of Europeans, were not affected until centuries later. W/n Europe’s growing cities, there were great differences in wealth and power.