1. Turn to page 19 in your ISN and answer the following questions 1.As trade with Europe and the colonies in America was established, what were some things that the wealthy entrepreneurs would need? 2.Where would they produce their items that they were trading? 3.What do you think existed between the end of the farm-centric era and the dawn of the age of factories?

3. Mercantilism and Rising Demand When: 1600’s What: Economic system that said a country should export more than it imports to maintain and increase wealth Where: Europe How: import raw materials, export finished goods How: Tightly regulate when goods could be sold or bought (Fish on Fridays) Result: limits on commerce brought its decline as demand for better access to more goods rose

4. Mercantilism Who: European Countries What: economic theory -- nation should export more than imports to maintain and increase wealth How: – import raw materials, export finished goods – strictly regulate business (guild restrictions) – limit amount of materials a worker could make in a day – Tightly regulate when items could be bought and sold (Fish Friday) When: 1600’s Why: Kept control of $$ and resources in the hands of the wealthy few and the government and the guilds Problem: Greatly limited expansion and growth; producers were limited, consumers were limited, economy stagnated

6. What: By 18 th century, guilds had lost their power, and as the wealthy became wealthier, demand for new products increased Why : With new demand for finished goods, Merchants responded by recognizing that a supply of products that would be in demand would be profitable Where: Primarily England (British Isles) How: Merchants acted as coordinators between producers and consumers – Merchants would purchase large amounts of raw materials (like cotton or wool) – Supply these materials to rural carders* Combed the fibers to prepare them for spinning – The combed fibers were then sent to rural spinners Spun into thread and yarn – Merchants would take the thread or yarn to rural weavers Weave into cloth – Cloth taken to workers who would bleach or dye it – Merchants would take finished cloth and sell it to consumers Merchants used their profits to purchase more materials which allowed cycle to continue

7. Cottage Industry

8. Comic Strip Create a 3-panel (or more) cartoon/comic strip depicting the cottage industry system. You may use any item (including wool) Must include steps necessary to take product from raw materials to finished product Must use color and words Must be neat