The Columbian Exchange Mercantilism

Columbian Exchange The exchange of plants, animals, and diseases between Europe, Africa, and the Americas

Effects of the Columbian Exchange Introduction of new crops from the Americas to Europe, Africa, and Asia led to population growth

Effects of the Columbian Exchange Increased cultural diffusion Europeans were influenced by Native American foods as well as African farming methods, cooking styles, and music Spread of European languages Spread of Christianity

Effects of the Columbian Exchange The combination of new products and ideas promoted economic growth in Europe

European Compete for Colonies The success of the Spanish colonization increased European interest in the Americas French establish colonies in Canada Dutch establish colonies along the Hudson River British colonize east coast of U.S.

Mercantilism An economic system in which colonies exist for the benefit of the colonial power Europeans looked at their colonies as possessions that existed for their benefit

Principles of Mercantilism Might of a country depends on gaining surpluses of gold and silver

Principles of Mercantilism A main goal is the creation of a favorable balance of trade Exporting more goods than you import

Principles of Mercantilism The purpose of colonies: Ship raw materials to the “mother country” (colonial power) Buy finished goods from the colonial power

Impact of Mercantilism • impact of mercantilism  contributed to the rise of a global economic system that connected Europe to its colonies and colonial aspirations used by the absolute monarchies of 17th & 18th century Europe, who centralized their governments and expanded government bureaucracies ➡ ➡ ➡ ✓  mercantilism would eventually be challenged in the 18th century by some French and British economists, who would argue for a laissez-faire (hands-off) approach to the economy

Growth of Capitalism in Europe Increased trade with colonies encouraged the development of capitalism in Europe. People invested money in companies in hopes of making a profit Joint stock companies formed to finance overseas expedition Led to the growth of the middle class in Europe.

The Seeds of captialism background ✓  capitalism: an economic system in which the means of production are mostly privately owned, and capital is invested in the production, distribution and other trade of goods and services, for profit in a competitive free market; also known as a market economy or free enterprise [adapted from Wikipedia] ✓  as much as the Commercial Revolution was mercantile in nature, it also opened the doors for the rise of capitalism • contributing factors ✓  Renaissance values allowed for the accumulation and enjoyment of wealth ✓  Protestant (Puritan) Work Ethic: many Protestants believed hard work and worldly success were outward signs of God’s grace ✓  creation of joint-stock companies, banking systems and new business opportunities gave investors a vehicle for the acquisition of wealth

Supply and Demand

Mercantilism Hand Turkey AKA “Merc Turk” Exports > Imports Bullion Self-Sufficiency Regulation Subsidies Monopolies Tariffs Colonialism Corruption How to Draw a Hand Turkey Art Credit: brandon schauer

Closure Define the term Columbian Exchange. What is mercantilism? What was one goal of mercantilism? What was the goal of Capitalism ?