1. Age of Exploration – Mercantilism 7-1.4 1. Export 1. Export 2. Import 2. Import 3. Mercantilism 3. Mercantilism 4. Capitalism 4. Capitalism 5. Market Economy 5. Market Economy 6. Balance of Trade 6. Balance of Trade 7. Tariffs 7. Tariffs 8. Middle Class 8. Middle Class 9. Entrepreneur 9. Entrepreneur 10. Capital 10. Capital 11. Market 11. Market

2. Europeans Expansion and Business Standard 7-1.3 and 7.1.4

3. 1. Economic Changes in Europe Resulted from…….. 1. Growth of International Trade 1. Growth of International Trade 2. Discovery and colonization of New World 2. Discovery and colonization of New World 3. Growing Middle Class 3. Growing Middle Class 4. Complex Economy 4. Complex Economy

4. The Columbian Exchange The Columbian Exchange A. Is the movement of goods, ideas, people, and disease across the Atlantic

5. 2. Mercantilism A. Europeans countries - the more bullion (gold and silver) you had the more powerful you were. B. Government sought to control and regulate trade- balance of trade.

6. 3. Mercantilism step-by-step 1. Export more than you import. 2. Build colonies- countries get raw materials and products needed -so you can export them and provide a market for finished products. 3. Use high tariffs to keep foreign goods out 4. Colonies can only trade with the mother country.

7. 4. Commercial Revolution A. Supply and Demand became important B. High Supply and Low Demand- Price is lower. C. Low Supply and High Demand- Price is higher.

8. Entrepreneurs A. Entrepreneurs risk money in hopes of earning a profit. B. Some projects were too large for one person so joint-stock companies were formed.

9. New Class of People- Middle Class Merchants and businessmen Merchants and businessmen Take risks to make a profit off of international trade Take risks to make a profit off of international trade Contributed to a growing market economy Contributed to a growing market economy

10. 5. What is a market economy? Economic system based on the exchange of goods and services for the purpose of making capital- money Economic system based on the exchange of goods and services for the purpose of making capital- money The market place The market place

11. 6. What creates Capitalism? Mercantilism Mercantilism International Trade International Trade Rise of the middle class Rise of the middle class Developing market economy Developing market economy Relying on people not governments to own property, make goods and buy and sell them freely Relying on people not governments to own property, make goods and buy and sell them freely Driven by the desire to make a profit. Driven by the desire to make a profit.