1. New Global Connections (1415-1796)
Lesson 6 Effects of Global Contact

2. New Global Connections (1415-1796) 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.

3. New Global Connections (1415-1796) Lesson 6 Effects of Global Contact
Key Terms
Columbian Exchange.
Commercial Revolution,
inflation.
price revolution.
capitalism,
free enterprise system,
entrepreneurs,
mercantilism,
tariffs,

4. The Columbian Exchange
The European voyages of exploration in the 1500s and 1600s set off a chain of events that brought major changes to the world. Over the next centuries, European exploration and expansion overseas affected people from Asia, Africa, and the Americas to Europe itself.

5. The Columbian Exchange
A Global Exchange
Columbian Exchange- exchange of plants, animals, diseases, and goods between “old” world and “new” world
Exchanging Foods and Animals
To Americas- horses, wheat, diseases
To Europe- tomatoes, corn, and potatoes
Population Growth
Lead to population explosion around world
Movement of People and Ideas
People and ideas spread
Hammock, canoe

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

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

8. A Commercial Revolution
The opening of direct links with Asia, Africa, and the Americas had far-reaching economic consequences 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.

9. A Commercial Revolution
Commercial Revolution – contact spurred growth of modern capitalism, banking, and investing
The Price Revolution
Inflation resulted from increase in money supply
Free Enterprise
Capitalism- investing money to make profit
Free enterprise- private owned business that make their own decisions
Entrepreneurs- enterprising business people
Supply and demand
New Business Methods
Entrepreneurs Bypass the Guilds
Decline of guilds

10. 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.

11. 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.

12. Mercantilism
European monarchs enjoyed the benefits of the Commercial Revolution. In the fierce competition for trade and empire, they adopted a new economic policy, known as mercantilism, which was aimed at strengthening their national economies. Mercantilists believed that a nation’s real wealth was measured in its gold and silver treasure. To build its supply of gold and silver, they said, a nation must export more goods than it imported.

13. Mercantilism
Mercantilism- establishing colonies to set up positive balance of trade and enrich the mother country
The Value of Colonies
Provided raw materials and markets for goods
Increasing National Wealth
Monopolies and tariffs enriched governments
Impact on European Society
Nation states became even more powerful
Rising middle class

14. 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.

15. Quiz: The Columbian Exchange
Which of the following was an effect of the Columbian Exchange on population?
A. Millions of people moved to the Americas.
B. Exchanges of food plants decreased populations in various regions.
C. Some populations thrived as they developed resistance to new diseases.
D. Millions of people moved to Europe.

16. Quiz: A Commercial Revolution
Which of the following was a difference between capitalist entrepreneurs and guild masters?
A. Guild masters hired many more workers than capitalists.
B. Capitalists let supply and demand set prices; guild masters regulated prices.
C. Guild masters invested their profits in global businesses; capitalists gave their profits to cottagers.
D. Capitalists were reluctant to compete and take risks; guild masters were eager to expand into risky overseas markets.

17. Quiz: Mercantilism
According to the economic policy of mercantilism, how did colonies benefit the parent European country?
A. Colonies sent raw materials to the parent country and bought the parent country’s manufactured goods.
B. Colonies sent manufactured goods to the parent country and bought the parent country’s raw materials.
C. Colonies sent immigrants and cultural items to the parent country.
D. Parent countries sent industry and profits to the colonies.