Chapter 20 Section 4

Objective Describe the Columbian Exchange, global trade, and mercantilism.

The Columbian Exchange the transfer of plants, animals, and diseases between the Old World and the Americas following Columbus's arrival in the Caribbean in 1492.

The Columbian Exchange Led to a population increase because of the increase of food products Led to the migration of millions of people Benefited who? Europeans and the Colonies Catastrophic for who? Natives

Colonists/explorers jump-started a process of evolution that hadn’t yet reached the New World Prematurely merged New World with Old World Before, New and Old World evolved/progressed in isolation

Global Trade Found new wealth  led to more oversea trade Rise in business, 16th & 17th centuries

New Economic Systems Capitalism  an economic system based on private ownership and the investment of resources for profit Governments no longer only ones with great wealth Merchants gained $$ and invested it Mercantilism  a country’s power depends mainly on its wealth Goal of every nation was to gain as much wealth as possible Colonies were seen as places to take resources from Colonies were a supplier and provided a market

Economic Revolution Changes European Society Growth of towns Very wealthy merchants Increased nation’s wealth  led to creation of national identity Disadvantages: Much of population still lived in rural areas and remained poor

Governments made a lot of money off the colonies, but it also cost a lot to maintain so many governments Government backed monopolies created a greater divide between the rich and the poor A strong European middle class was created, but the laborers of the factories and mines lived wretched lives