2.  Describe how capitalism and banking helped countries expand wealth through trade and led to colonies.  Analyze the benefits and drawbacks of the Columbian Exchange. After reading the section, you will be able to:

3. New ways of doing business developed to raise money to finance (pay for) trade Europe’s growing population demanded more goods and services. This demand led to... An economic system in which money is invested in business to make profits. This is called... Capitalism

4. At first, merchants turned to bankers for money to finance their ventures... The Medici Family Florence, Italy The Fugger Family Augsburg, Germany Loaned money Accepted deposits Transferred funds Set up branches in several European cities Loaned $ to European monarchs

5. In the 1600’s a new way of doing business developed in Europe. Joint-Stock Company $$$ Investor $ Investor $ Investor $

6. Entrepreneurs Money Ideas Raw Materials Labor They combined: To Make ProfitsGoal:Used Profits to:Expand the business

7. An economic theory that held that a nation became powerful by building up its supply of bullion. BullionGold & Silver In other words... POWER

8. Mercantilism led to increased rivalry between nations. Rivalry meanscompetition A colony is a settlement of people living in a new territory controlled by their home country. Colony Is supposed to produce goods its home country does not have. That would reduce the need to import and thus save $$$. $ = POWER

9. SPAIN NEW SPAIN Countries in Europe such as England and Spain competed for overseas territory that could produce wealth. For example – gold, silver and natural resources.

10. As Europe traded with the world, a global exchange of people, goods, technology, ideas, and even diseases began.

11. Not everything exchanged between Europe and America was good... Beginnings of Slave Trade Millions of enslaved Africans were moved to the Americas to plant and harvest sugar cane and tobacco. Initially, the Spanish used Native Americans to work their tobacco and sugar cane plantations (large farms). The Spanish priest, Bartolomé de Las Casas, thought that Africans could endure the hard labor better than the Native Americans. BITTER REGRET

12. 1.What is the name of the economic system that uses money invested in business to make profits? 2.What Italian banking family loaned money to finance overseas expeditions? 3.An individual who wanted to invest money in an overseas expedition could do so by buying stock, or shares in a. 4.What group of individuals combined money, ideas, raw materials, and labor to make goods and profits? 5.Define: bullion. 6.Define: mercantilism. 7.A is a settlement of people living in a new territory controlled by their home country. 8.The global transfer of people, goods, technology, ideas and diseases is called? 9.Who bitterly regretted his suggestion that African Americans replace Native Americans on Spanish plantations? 10.List 3 things that that the Americas transferred to Europe in the Columbian exchange. List 3 things that Europe transferred to the Americas in the Columbian exchange. (pg. 96)