1. Global Contact Tariff- tax on imported goods
Import- to buy or bring in (goods or services) from a foreign country.
Export- send (goods or services) to another country for sale.

2. Global Contact ( )

3. Explain how European exploration led to the Columbian Exchange.
New Global Connections
Lesson 6 Effects of Global Contact ( )
Learning Objectives
Explain how European exploration led to the Columbian Exchange.
Explain new economic factors and principles that contributed to the success of the commercial revolution.
Understand the impact of mercantilism on European and colonial economies.

4. Commercial Revolution inflation price revolution capitalism
New Global Connections ( )
Effects of Global Contact
Key Terms
Columbian Exchange
Commercial Revolution
inflation
price revolution
capitalism
free enterprise system
entrepreneurs
mercantilism
tariffs

5. The European voyages of exploration in the 1500s and 1600s set off a chain of events that brought major changes to the world.

6. The Columbian Exchange
This 1592 engraving shows ships preparing to leave Lisbon, Portugal, bound for Asia and the Americas.

7. Columbian Exchange
the global exchange of goods, ideas, plants and animals, and disease that began with Columbus's journey to the Americas.

8. The Columbian Exchange
Analyze Charts The Columbian Exchange affected people around the world. What livestock were introduced to the Americas by the Columbian Exchange?

9. Commercial Revolution
The opening of direct links with Asia, Africa, and the Americas made a lot of money for Europeans and their colonies. Europe underwent a period of economic growth and change known as the Commercial Revolution, which spurred the growth of modern capitalism, banking, and investing.

10. Mercantilism
policy by which a nation sought to export more than it imported in order to build its supply of gold and silver.

11. Tariff
tax on imported goods.

12. Import
to buy or bring in (goods or services) from a foreign country.

13. Top 10 US Imports 1. Oil: US$347.7 billion (14.8% of total US imports)
2. Machines, engines, pumps: $324.3 billion (13.8%)
3. Electronic equipment: $314.8 billion (13.4%)
4. Vehicles: $261.1 billion (11.1%)
5. Medical, technical equipment: $75.2 billion (3.2%)
6. Pharmaceuticals: $72.6 billion (3.1%)
7. Gems, precious metals, coins: $63.2 billion (2.7%)
8. Organic chemicals: $53.6 billion (2.3%)
9. Furniture, lighting, signs: $52 billion (2.2%)
10. Plastics: $47.9 billion (2%)

14. Export
send (goods or services) to another country for sale.

15. Top Ten US Exports
Machines, engines, pumps: US$219.8 billion (13.6% of total exports)
Electronic equipment: $172.4 billion (10.6%)
Oil: $155.6 billion (9.6%)
Vehicles: $136 billion (8.4%)
Aircraft, spacecraft: $125.2 billion (7.7%)
Medical, technical equipment: $85 billion (5.2%)
Gems, precious metals, coins: $64.1 billion (4%)
Plastics: $63 billion (3.9%)
Pharmaceuticals: $44 billion (2.7%)
Organic chemicals: $42.3 billion (2.6%)

16. Capitalism
economic system in which the means of production are privately owned and operated for profit.

17. Free Enterprise system
Private businesses are able to compete with each other with little control by the government. Products, prices, and services are driven by free market laws of supply and demand rather than government regulations.

18. Inflation
economic cycle that involves a rapid rise in prices linked to a sharp increase in the amount of money available.

19. Value of Colonies
To mercantilists, colonies existed solely for the enrichment of the parent country. Colonies served as both a source of raw materials and a marketplace to sell manufactured goods. Many mercantilists went on to become entrepreneurs.

20. Entrepreneur
person who assumes financial risk in the hope of making a profit.

21. A Commercial Revolution
Analyze Charts Tulipmania is an example of an inflationary price bubble. From an investment standpoint, which year was the worst to buy a tulip? Explain.

22. A Commercial Revolution
During the Commercial Revolution, the Prague stock exchange was a busy center of investment activity. Prague was the capital of the Holy Roman Empire in the late 1500s.

23. Mercantilism
As European rulers embraced mercantilism and expanded trade, their ports became thriving centers of commerce. This painting depicts the crowded port of Toulon, France, in the mid-1700s.

24. Impact on European Society
Europe was still divided into distinct social classes, but a middle class gradually began to emerge and grow due to economic changes.
Wealth began to spread and many people began to live more comfortably.
Most workers, however, continued to live in poverty.