1. European Expansion and Business Standard 7-1.3 and 7.1.4

2. Age of Exploration – Mercantilism 1. Export11. Joint Stock Company 2. Import 3. Tariff 4. Middle Class 5. Entrepreneur 6. Capital 7. Market 8. Bullion 9. Invest 10. Mercantilism

3. 1. Economic Changes in Europe Resulted from…….. 1. Growth of International Trade 1. Growth of International Trade 2. Discovery and colonization of the New World 2. Discovery and colonization of the 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- difference between imports and exports..

6. 3. Mercantilism step-by-step 1. Export (send out) more than you import (buy). 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 (taxes) 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. 5. Entrepreneurs A. Risk money in hopes of earning a profit. B. Some projects were too large for one person so joint-stock companies were formed.

9. 6. New Class of People- Middle Class Merchants and businessmen who make $ by investing/working in commerce Merchants and businessmen who make $ by investing/working in commerce 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. 7. 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- where people buy/sell goods The market place- where people buy/sell goods

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