1. + Changes in Europe Chapter 3 Section 5 pp.

2. + Vocab Inflation-economic cycle that involves a rapid rise in prices linked to a sharp increase in the amount of money available Capitalism-economic system in which the means of production are privately owned and operated for profit Entrepreneur-person who assumes financial risks in the hope of making a profit Joint stock company-private trading company in which Mercantilism-policy by which a nation sought to export more than it imported in order to build its supply of gold and silver Tariff-tax on imported goods

3. + A Global Exchange When Columbus returned to Spain in March 1493, he brought back new plants and animals He returned later that year bringing 1,200 settlers and European animals and plants Because of this, Columbus began a vast global exchange Included not only people, plants, and animals but technology and diseases. Called the Columbian Exchange

4. + New Foods Europeans brought home a variety of food Tomatoes, pumpkins, and peppers Most important was corn and potatoes Also brought animals and plants Wheat, grapes, and bananas Cattle, pigs, goats and chickens Introduced horses and donkeys to Native Americans

5. + Impact on Population By the 1700s, all the food contributed to population growth around the world The Columbian Exchange sparked the migration of millions of people Europeans settled in the Americas as well as Africa and Asia Caused Native American population to decrease drastically This movement led to the transfer of ideas and technology Language traveled

6. + The Price Revolution In the early modern age, prices began to rise in Europe Called inflation As population grew, so did the demand for goods & services Inflation was also influenced by the demand for silver & gold The increased money in circulation, combined with the scarcity of goods, caused prices to rise

7. + Growth of Capitalism Expanded trade and the push for overseas empires spiked the growth of European capitalism Entrepreneurs organized, managed, and assumed the risks of doing business As trade increased, so did entrepreneurship The price revolution of the early modern age gave a boost to capitalism Entrepreneurs and capitalists made up a new business class Help change the local European economy into an international trading system

8. + New Business Methods Early capitalists discovered new ways to create wealth During the late Middle Ages, banks sprang up, allowing wealthy merchants to lend money at interest The joint stock company grew Allowed people to pool large amounts of capital needed for overseas ventures

9. + Bypassing the Guilds The growing demand for goods led merchants to find ways to increase production Guild masters often ran small-scale businesses without the capital to produce for large markets The putting-out system was first used to produce textiles but later spread to other industries A merchant capitalist distributed raw wool to peasant cottages Separated capital and labor for the first time

10. + Mercantilism European monarchs enjoyed the benefits of the commercial revolution They adopted a new economic policy known as mercantilism that aimed at strengthening their national economies

11. + The Role of Colonies Colonies existed for the benefit of the parent country They provided resources and raw materials not available in Europe European powers passed strict laws regulating trade with their colonies Colonists could not set up their own industries to manufacture goods Also forbidden to buy goods from a foreign country

12. + Increasing National Wealth Mercantilists urged rulers to adopt policies to increase national wealth and government revenues Boosted productions by exploiting mineral and timber resources, built roads, and backed new industries Governments imposed tariffs were designed to protect local industries from foreign competition by increasing the price of imported goods

13. + The Lives of Ordinary People Merchants who invested in overseas ventures acquired wealth but the price revolution hurt nobles Their wealth was in land and they had trouble raising money to pay higher costs In towns and cities, the wages of hired workers didnt keep up with inflation, creating poverty and discontent Within Europes growing cities, there were great differences in wealth and power Regardless of social class, European families were patriarchal

14. + Looking Ahead In the 1500s and 1600s, Europe emerged as a powerful new force on the world scene European expansion would spread goods and other changes throughout the world Also revolutionize the European economy and transform its society

15. + Review 1. A. Columbian Exchange: Columbus brought people, plants, and animals from the Americas to Europe. Returning to the Americas, he brought European settlers and European plants and animals, thus beginning a vast global exchange of plants, animals, and people. Other less desirable things like disease was transported as well. B. Commercial Revolution: Began with the linking of the world for trade, and that trade sparked the Price Revolution, Growth of Capital, and New Business Methods. C. Putting out System: Merchants distributed wool to cottages that spun the wool into yarn, that was then sent to other cottages which spun the yarn into cloth, then cloth was sent to another cottage to be made into clothes or sold directly as cloth. In this way Merchants bypassed the Guilds of Europe. 2. A. Inflation: Rise in prices linked to sharp increases in amount of money available D. Joint Stock Company: Many people buying shares to create a company E. Mercantilism: Nation sought to export more than it imported in order to build its supply of gold and silver F. Tariff: Tax on imported goods!

16. + Review cont B. Capitalism: Investment of money to make a profit in a private business C. Entrepreneur: enterprising Merchant with money or CAPITAL to invest D. Joint Stock Company: Many people buying shares to create a company E. Mercantilism: Nation sought to export more than it imported in order to build its supply of gold and silver F. Tariff: Tax on imported goods!

17. + Review cont 3. How did the voyages of Columbus lead to global exchanges of goods and ideas? Columbus brought people, plants, and animals from the Americas to Europe. Returning to the Americas, he brought European settlers and European plants and animals, thus beginning a vast global exchange of plants, animals, and people. 4. Explain how each of the following contributed to economic changes in Europe: A] The Price Revolution: The rise in prices made merchants wealthy but hurt nobles, whose wealth was tied up in land, and workers, whose wages did not keep up with inflation B] Capitalism: Investors provided the money that financed international trade C] Mercantilism: It encouraged the growth of overseas empires and the regulation of trade. 5. How did the economic changes of the 1500s and 1600s affect the lives of ordinary people? Depended on a persons social class, merchants got rich, nobles lost money, and workers suffered poverty and unrest. All families in Europe were patriarchal, women had little rights and were to be a wife and mother, modesty, household economy, obedience, and caring for the family were the virtues society said a women should have, not a voice!