1. EUROPE Changes Their Economic System
MERCANTILISM
DOMINATES EUROPE AND HER COLONIES

2. MERCANTILISM GOVERNMENT– CONTROLLED (GOLD & SILVER) BY TRADE
ECONOMY WITH THE GOAL OF BUILDING UP A NATIONS BULLION…
(GOLD & SILVER) BY TRADE
1. Mother Country Claims Colony
Go Back To Mother Country
Back To Colony
2. Raw Materials & Gold
3. Finished Products Go

3. THE GOVERNMENT IS IN CHARGE OF MERCANTILISM
BUILD COLONIES (THEY SUPPLY RAW MATERIALS)
EXPORT MORE
IMPORT LESS
(THIS CREATES A FAVORABLE BALANCE OF TRADE)
3. FORCE TARRIFS (TAXES) ON FOREIGN GOODS TO KEEP THEM OUT OF YOUR COUNTRY
4. DO NOT ALLOW YOUR COLONY TO TRADE WITH OTHER NATIONS

4. CAPITALISM 4. RAW MATERIALS 2. MIDDLE CLASS & 3. NEW MARKETS
Economy which PEOPLE Not the Government
Own Property, Make Goods, and Buy and Sell them Freely !!!
Build up of 1. CAPITAL (money) to INVEST (put into business)
2. MIDDLE CLASS &
3. NEW MARKETS
4. RAW MATERIALS

5. COMMERCIAL REVOLUTION
COMMERCE: Buying and selling goods in large amounts over long distances of travel
ENTREPRENURE: Wealthy businessman who
risks money in order to make a profit
NEW SOCIAL CLASS: Middle Class made up of **Merchants: traders and businessmen &
** Artisans: Craftsman or skilled worker
EX: Barrel Maker, Blacksmith, Shoemaker, Woodworker, Rope Maker