The Columbian Exchange & Global Trade

The Colombian Exchange: The transfer of goods, foods, plants, animals, & slaves between Europe, Africa, & the Americas is known as the Columbian Exchange Led to the introduction of new foods & animals to Europeans: –Foods: coffee, corn, potatoes, tomatoes, squash, pineapple, & chocolate –Introduced tobacco, which became very popular in Europe Introduced new plants & animals to the Americas: –From Europe to Americas: horses, cattle, sheep & pigs –From Africa to Americas: bananas, wheat, rice, oats

The Negatives of the Columbian Exchange: The Columbian Exchange had a negative impact on the indigenous peoples of the Americas: Diseases brought from Europe & Africa destroyed Native American populations Most common diseases: –Small Pox –Measles –Influenza –Malaria Native Americans had no natural immunity or defense to the disease, so contraction of the disease was 90% fatal.

Global Trade: Rise of Capitalism: Increased wealth led to greater private ownership of businesses –Governments no longer controlled all the wealth –Increased investment into new businesses & economic ventures –Creation of Joint-Stock Companies where a group of investors owned a company/colony Problems of Capitalism –Increased money supply –Increased demand for goods led to inflation on prices –Devaluation of gold & silver due to the abundant supply

The Rise of Mercantilism: Increased wealth & new economic systems led to the policy of Mercantilism Mercantilism is the belief that a nation’s power is its wealth in gold & silver –Goal of every nation became to accumulate as much wealth as possible –Meant that even small nations, such as the Netherlands, could become the most powerful in Europe How a nation increases its wealth is to maintain a favorable balance of trade: –A favorable balance of trade occurs when a nations exports more than it imports Import: a good or service brought into a nation from another Export: a good or service sold to another country

Long Term Effects of Global Exchange: Introduced social & economic changes on three continents: Europe: –Rise of merchant & middle class –Transition from rural to urban society –Creation of towns & cities Americas: –Destruction of indigenous societies –Implantation of European culture into the Americas due to colonization Africa: –Slave trade destroys way of life in West Africa –Major shortage of labor leads to collapse of West African society