2. A Commercial* Revolution Changes in the economy of the world *Commercial=engaged in the buying and selling of goods

4. Columbian Exchange Columbian Exchange Made New Riches Goods went from Europe to the New World—as people migrated New, unknown goods were sent to the old world from the new “Gotta have it” attitude developed

5. The Transfer of goods made a difference New World Populations affected by disease, genocide. Natives became slaves New cultures arose from the mixtures of the new people Old World People migrated to the new world for a better chance New foods made better diets and longer lives

6. Economics Important Ideas and terms in how money is made and exchanged

7. In the beginning People hunted, gathered and made what they needed. Then, people began to trade things—2 onions for a rabbit or services— building for planting. BARTERING This is called BARTERING

8. Early Business Artisans.People began to specialize in certain work—they were Artisans. MerchantsMerchants took goods and sold them for profit Trade Fairs—Trade Fairs—where artisans assembled to sell their goods-- increased—thus more money exchanged hands!! Merchant GuildsMerchant Guilds (associations) were established to regulate prices and production cotton guilds, glass blowers guilds, violin makers, furniture makers ship builders guild, etc)

9. Middle Class A New Social Class was born—the Middle Class Merchants +Traders +Artisans =the Middle Class

10. By Mid-1500s (After Columbus) Prices were rising SHARPLY because there was more money and demand. This is called INFLATION

11. $$$$Capitalism $$$$ With so much money to be made, individuals began to own the businesses that were getting rich— not just the kings or the churches. This system is CAPITALISM The people who believe in individual ownership are C CC Capitalists.

12. “Entrepreneurs” Came up with the ideas Put up the money Took the financial risk Organized the $$-making ventures: managed, hired, paid for raw materials and transport, built the infrastructure and covered all the costs of running the business

13. Many Entrepreneurs got RICH!!!!!

14. MAKING $$$$$$ People began to be dedicated to MAKING $$$$$$ entrepreneurs capitalists These entrepreneurs and capitalists would make a new social class AND They would change the look of the world.

15. New Business Methods Book KeepingBook Keeping Lending MoneyLending Money Joint Stock CompaniesJoint Stock Companies  several would pool money so if things failed, you only lost what you put in

16. Cottage Industry The Cottage Industry To by-pass the guilds—who controlled mfg ($$$) —companies would contract individuals to produce goods.  A person would “make gloves” at their home, sell them to the companies and the companies sell them for more profit by skipping “the middle man.”

17. Mercantilism* *The economic system based on countries gaining more gold and silver—thus being richer….

18. Mercantilists believed A country’s wealth was in the gold and silver (money) it had. To accomplish this—you had to export more than you imported. The “New World” was a “super market” of raw materials.

19. Mercantilists believed M CThe colonies existed for the Mother Country’s profit The Colonies should be strictly regulated They could have no “home” industries could not buy goods on own (from other countries) only MC ships could trade in and out High tariffs (taxes) were charged on on imported goods

20. Countries began to become rich by: ExploitationExploitation of natural resources in the new world Building trade infrastructure  Roads, ships, industries monopoliesIssuing monopolies  Definition: Complete control of a product by an individual or company  This would limit who could get rich and would promote loyalty

21. A New World in Europe On the positive side Merchants were the rich, upper class Skilled workers thrived Middle Class had comfortable lives On the not-so-positive Hired laborers, servants did not enjoy same comfort Peasants still suffered the whim of mother nature.

22. Cottage Industry led to

23. Commercial Revolution Price Revolution Inflation New Business Capitalism Guilds Entrepreneurs Cottage Industry

24. So because of the Changing Economics… Who got rich and why? 1 2 3 Who’s life got better and why? 1 2 3 Who got it stuck to them and why? Was this better for the World or not? 1 2 3 1 2 3