EUROPE Changes their Economic System MERCANTILISM DOMINATES EUROPE AND HER COLONIES

Vocabulary Statements To Know: Textbook Pages 77-84 Complete on Notebook Pages 29-30 Charter was 2. Representative Assembly was 3. Mercantilism was 4. Export is 5. Import is 6. Balance of Trade is 7. Tariff is 8. Commerce is 9. Entrepreneur is 10. Joint-Stock Company was 11. Social Class is 12. Middle Class is 13. Capitalism is 14. Capital is 15. Free Enterprise is 16. Cottage Industry was 17. Columbian Exchange was

TURN TO PAGE 29 IN YOUR NOTEBOOK WE NEED TO DEFINE : SYSTEM IS AN ORGANIZED SET OF RULES PROCEDURES AND LAWS. ECONOMY IS THE TRADING, BUYING AND SELLING OF RAW MATERIALS FINISHED PRODUCTS AND SERVICES!

MERCANTILISM GOVERNMENT CONTROLLED ECONOMY WITH THE GOAL OF BUILDING UP A NATIONS BULLION (GOLD & SILVER) BY TRADE ! 1. Mother Country Claims Colony Go Back To Mother Country Back To Colony 2. Raw Materials & Gold 3. Finished Products Go

Mercantilism STEP BY STEP THE GOVERNMENT IS IN CHARGE OF MERCANTILISM Mercantilism STEP BY STEP BUILD COLONIES (THEY SUPPLY RAW MATERIALS) EXPORT MORE IMPORT LESS (THIS CREATES A FAVORABLE BALANCE OF TRADE) 3. FORCE TARRIFS (TAXES) ON FOREIGN GOODS TO KEEP THEM OUT OF YOUR COUNTRY 4. DO NOT ALLOW YOUR COLONY TO TRADE WITH OTHER NATIONS

CAPITALISM 4. MATERIALS (Raw) Economy which PEOPLE Not the Government Own Property, Make Goods, and Buy and Sell them Freely Build up of 1. MONEY ( CAPITAL) to INVEST (put into business) 2. MIDDLE CLASS & 3. MARKETS ( New) 4. MATERIALS (Raw)

COMMERCIAL REVOLUTION COMMERCE: Buying and selling goods in large amounts over long distances of travel ENTREPRENURE: Wealthy businessman who risks money in order to make a profit NEW SOCIAL CLASS: Middle Class made up of **Merchants (traders and businessmen) And ** Artisans (Craftsman or skilled worker) EX: Barrel Maker, Blacksmith, Shoemaker, Woodworker, Rope Maker

STEP BY STEP: What are the 4 steps of MERCANTILISM? 1. BUILD COLONIES 2. EXPORTS ARE MORE THAN IMPORTS 3. FORCE TARRIFS ON FOREIGN GOODS 4. NO TRADING WITH OTHER COUNTRIES COLONIES

STEP BY STEP: What are the 4 components of CAPITALSIM? 1. MONEY ( Capital to Invest ) 2. MATERIALS ( Ram Materials ) 3. MARKETS ( New Markets ) 4. MIDDLE CLASS ( Merchants & Artisians)

STEP BY STEP What are the 3 components of the COMMERCIAL REVOLUTION? 1. COMMERCE 2. ENTREPENURE 3. NEW SOCIAL CLASS ( Middle Class Merchants)