1. The Columbian Exchange Mercantilism

2. Columbian Exchange
The exchange of plants, animals, and diseases between Europe, Africa, and the Americas

5. Effects of the Columbian Exchange
Introduction of new crops from the Americas to Europe, Africa, and Asia led to population growth

6. Effects of the Columbian Exchange
Increased cultural diffusion
Europeans were influenced by Native American foods as well as African farming methods, cooking styles, and music
Spread of European languages
Spread of Christianity

7. Effects of the Columbian Exchange
The combination of new products and ideas promoted economic growth in Europe

8. European Compete for Colonies
The success of the Spanish colonization increased European interest in the Americas
French establish colonies in Canada
Dutch establish colonies along the Hudson River
British colonize east coast of U.S.

9. Mercantilism
An economic system in which colonies exist for the benefit of the colonial power
Europeans looked at their colonies as possessions that existed for their benefit

10. Principles of Mercantilism
Might of a country depends on gaining surpluses of gold and silver

11. Principles of Mercantilism
A main goal is the creation of a favorable balance of trade
Exporting more goods than you import

12. Principles of Mercantilism
The purpose of colonies:
Ship raw materials to the “mother country” (colonial power)
Buy finished goods from the colonial power

14. Impact of Mercantilism
• impact of mercantilism  contributed to the rise of a global economic system that connected Europe to its
colonies and colonial aspirations
used by the absolute monarchies of 17th & 18th century Europe, who centralized their governments and expanded government bureaucracies
➡ ➡ ➡
✓  mercantilism would eventually be challenged in the 18th century by some French and British economists, who would argue for a laissez-faire (hands-off) approach to the economy

15. Growth of Capitalism in Europe
Increased trade with colonies encouraged the development of capitalism in Europe.
People invested money in companies in hopes of making a profit
Joint stock companies formed to finance overseas expedition
Led to the growth of the middle class in Europe.

16. The Seeds of captialism
background
✓  capitalism: an economic system in which the means of production are mostly privately owned, and capital is invested in the production, distribution and other trade of goods and services, for profit in a competitive free market; also known as a market economy or free enterprise [adapted from Wikipedia]
✓  as much as the Commercial Revolution was mercantile in nature, it also opened the doors for the rise of capitalism
• contributing factors
✓  Renaissance values allowed for the accumulation and enjoyment of wealth
✓  Protestant (Puritan) Work Ethic: many Protestants believed hard work and worldly success were outward signs of God’s grace
✓  creation of joint-stock companies, banking systems and new business opportunities gave investors a vehicle for the acquisition of wealth

17. Supply and Demand

18. Mercantilism Hand Turkey
AKA “Merc Turk”
Exports > Imports Bullion Self-Sufficiency Regulation Subsidies Monopolies Tariffs Colonialism Corruption
How to Draw a Hand Turkey
Art Credit: brandon schauer

19. Closure Define the term Columbian Exchange. What is mercantilism?
What was one goal of mercantilism?
What was the goal of Capitalism ?