The Columbian Exchange and the Global Economy. Columbian Exchange Global transfer of foods, plants, and animals during colonization Corn and potato helped.

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Presentation transcript:

The Columbian Exchange and the Global Economy

Columbian Exchange Global transfer of foods, plants, and animals during colonization Corn and potato helped increase world population

Commercial Revolution New wealth from the Americas and growth in trade prompted new business practices in Europe in the 16 th and 17 th centuries Rise of capitalism- economic system based on private ownership and investment of wealth for profit Led to increase in merchants Led to increase in money supply and wealth of European nations Inflation and rising costs Joint Stock Companies (similar to modern corporations) arise

Mercantilism Country’s power depended on wealth 2 ways to increase wealth obtain gold and silver establish favorable balances of trade (sold more goods than bought)

Changes in Europe growth of towns and cities (although most people still lived in rural areas) increase in merchant status increase in wealth of Europe

True or False?If true, leave it. If false, change the underlined word. The joint-stock company of the 1500s and 1600s was very similar to today’s corporation. Capitalism is an economic system based on public ownership of property and the investment of wealth to earn profit. Most European joint-stock companies in the 1500s and 1600s were founded for the purpose of fighting wars.

The commercial revolution in Europe took place before the establishment of colonial empires in the Americas. As part of the Columbian Exchange, corn and potatoes were carried west across the Pacific Ocean for the first time. As part of the Columbian Exchange, tobacco and tomatoes were carried west across the Pacific Ocean for the first time.

According to mercantilism, a favorable balance of trade results when the value of the goods sold by a country equals the value of the goods bought by that country.

Group Discussion What was mercantilism? How and why did it encourage European colonization of the Americas?