1.  The Columbian Exchange

2.   The global transfer of foods, plants, and animals during the colonization of the Americas.  Items brought back from America had never been seen before but quickly became an important part of society. What is it?

3.   Simple items such as corn and potatoes became revolutionary in Europe because they were cheap, easy to grow, and nutritious.  As a result the European population exploded. Impact: Europe

4.   Animals such as cattle and horses were adopted by native cultures.  However the disease brought with Europeans and these new animals decimated native populations. Impact: The Americas

5.   As a result of new wealth and expanded overseas trade, two new economic systems are born.  1. Capitalism  2. Joint-Stock Companies Effects of Global Trade

6.   An economic system based on private ownership and the investment of resources, such as money, for profit.  In other words, governments were no longer the only owners of wealth and the merchant class expanded (increased middle class). Capitalism

7.   As the number of businessmen and middle class grew so did the type of businesses.  The joint-stock company was like a modern day corporation with investors bought shares of the company. People now began pooling their money for a common purpose. Joint-Stock Companies

8.   The belief that a nations power depended on its wealth and as a result the goal of every nation should be to attain as much wealth as possible at any cost.  They needed to gain this wealth by either finding gold or establishing trade with a rival where they made more money. Mercantilism

9.   Urban populations and the number of merchants increased by incredible amounts.  These economic ideas reinforced the idea of nationalism and European nations increased in power.  Although a middle class emerged, monarchs still managed to maintain most of the new wealth. Economics Effect European Society