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Pre-Columbian America Review As you walk around the room, observe each poster about the Maya, Inca, and Aztec. Use the information provided by the posters to answer the set of questions for each empire Once you have this completed, get your answers checked by me and then you can get started on your concept cards!

Standard Standard: 7.63 Explain the origins of modern capitalism, the influence of mercantilism, and the cottage industry; the elements and importance of a market economy in 17th century Europe; the changing international trading and marketing patterns; including their locations on a world map; and the influence of explorers and mapmakers. In short- What systems of economy developed in Europe during 17th century? How did Europe’s economy in the 17th century influence our system of economy today? http://www.jftc.go.jp/en/ippan/part1/market.html

Capitalism Privately Owned- owned by either one individual or by a small group of individuals Opposite of Communism- government controls the production of goods & services

Opposite of Command Economy- Government has total control Market Economy Market Economy A capitalistic type of economic system in which there is free competition and prices are determined by the interaction of supply and demand. *There is little government intervention. Opposite of Command Economy- Government has total control

What if there was no competition?

Cottage Industry Guilds Cottage Industry: business or manufacturing activity carried on in a person's home. Guilds: a medieval association of craftsmen or merchants, often having considerable power

What is Mercantilism? Explain the theory of Mercantilism What is the best way for a country to get gold & silver? The key idea of mercantilism is that a country’s power depends on it wealth.(gold and silver) A country must export (sell) to other countries, more goods than it imports (buys) from other countries

What is Mercantilism? Colonies According to Mercantilism, countries should establish_______ What is a colony? Colonists provide _________ materials that are not found or made in the home country. These materials are then __________ to the home country to be used for manufacturing. This keeps the home country from having to do what? colonies a settlement of people living in a territory controlled by their home country raw shipped The home country does not have to buy goods from other countries

What is Mercantilism? European trading posts/colonies in Asia Europeans established trading posts and colonies in __________ and ________________. Asia North America

Document Analysis Manorialism Based on the diagram, what is one economic characteristic of the medieval manor?

Document Analysis Mercantilism According to the political cartoon, what is one characteristic of mercantilism from the perspective of the mother country?

Manorialism vs Mercantilism Describe the major differences between manorialism & mercantilism

Creating Joint-Stock Companies As trade flourished and grew, new practices in business were developed, and a fundamental change in European society took place.  Historians call this time period ______________ What is an entrepreneur? As overseas trade increased, many projects were too large for one entrepreneur to pay for. As a result, groups of entrepreneurs began to form ________________________. Commercial Revolution One who organizes, pays for, and takes on the risk of setting up a business joint-stock companies

Creating Joint-Stock Companies A joint-stock company is a business in which ________________________________. What does it mean to invest?_____________________________________________. Why do you think an individual would choose to invest in an overseas trade project? many people can invest to put money (stock) into a project in exchange for a profit

Mercantilism & Cottage Industry influences on Capitalism the means of production of goods or services are owned privately (individual/small group) and operated for profit

Why were European countries motivated to explore Why were European countries motivated to explore? Look at the following pictures and see if you can determine the major reasons for exploration in the 15th through 17th centuries!

GOD

Finish the World Trade Changes & Reasons for Exploration worksheet Homework Finish the World Trade Changes & Reasons for Exploration worksheet