New Patterns of TradeNew Patterns of Trade

COLUMBIANEXCHANGE

JOINT STOCKCOMPANIES

MERCANTILISM

BALANCE OF TRADE

Name: _________________________

Main IdeaMain IdeaThe creation of colonies in the

Americas and elsewhere led to the exchange of new types of goods, the establishment of new patterns of trade, and new economic systems in Europe.

LEQ: LEQ: How did the creation of colonies

lead to the exchange of new types of goods, new patterns of trade, and new economic systems?

FOCUS QUESTIONS?FOCUS QUESTIONS?How did exploration result in a new exchange of plants and animals?

What was mercantilism and how did it push the drive to establish colonies?

How did global trade lead to the rise of capitalism in Europe?

Key TermsKey TermsColumbian ExchangeMercantilismBalance of tradeSubsidiesCapitalismJoint-stock companies

On a scale of 1 to 10, with 10 On a scale of 1 to 10, with 10 being the highest, how much being the highest, how much do you like chocolate?do you like chocolate?

Now that you have tasted Now that you have tasted chocolate, could you imagine chocolate, could you imagine your life without it?your life without it?

Europeans only tasted Europeans only tasted chocolate for the first time in chocolate for the first time in the 1500s!the 1500s!

Chocolate Drinks made by Chocolate Drinks made by AztecsAztecs

Cortes actually found the Aztec chocolate to be bitter.

The Aztec beverage did not include sugar or milk.

An Aztec noblewoman pouring a chocolate drink from the Codex Tudela.

Codex Tedula – Aztec Codex Tedula – Aztec CalendarCalendar

Dominican Friars Add Dominican Friars Add SugarSugar

Brought their beverage to Prince Philip of Spain.

Chocolate drinks instantly become one of the favorite beverages of the Spanish nobility.

A European Love For Chocolate is A European Love For Chocolate is Born!Born!

Chocolate remained a treat for the wealthy and drinking it was a sign of high status.

Columbian ExchangeColumbian ExchangeThe arrival of colonists and their

interaction with Native Americans led to sweeping cultural changes in both societies.

The Exchange of GoodsThe Exchange of GoodsDue to isolation, plants and

animals evolved differentlyEuropeans had never known

foods like potatoes, corn, sweet potatoes, or turkeys.

Native Americans had never known coffee, oranges, rice, wheat, sheep or cattle

AnimalsAnimalsAmericas ~ llamas, turkeys and

guinea pigsEurope ~ horses, donkeys, pigs,

rabbits and cattle

Proud to be an America

n

Effects of the Columbian Effects of the Columbian ExchangeExchangeExchanged foods become staples.Increased nutritionIncreased economic activityIncreased occurrence of diseases

Case in point ~ Can you name three main dishes, that you might find on an Italian menu, that does not include tomatoes?

22ndnd case in point ~ case in point ~China – Name two basic facts

about China.Their massive population is due,

in part, to the arrival of corn.

Population Growth

ChinaWest Europe

New DiseasesNew DiseasesNative Americans had no natural

resistance to European diseases such as small pox, measles, influenza, and malaria.

DiseasesDiseases

Check for UnderstandingCheck for UnderstandingWhat were two lasting effects of

Columbian Exchange?

MercantilismMercantilismAn economic policy whereas a

nation’s strength depended upon its wealth.

EXAMPLE: A wealthy nation can build a strong military and can therefore protect and expand its influence.

Balance of TradeBalance of TradeAcquired in two ways:◦1. harvest gold and silver from the colonies

◦2. sell more goods than you buy

Creating a Favorable Balance Creating a Favorable Balance of Tradeof TradeImpose tariffs ~ reduces importsIncrease exports ~ sell finished

goods to nations for higher prices than the raw materials ~ ie, woolen cloth

Control raw materialsEncourage subsidies

EXAMPLE: Reducing Imports

SubsidiesSubsidiesGovernment provided grants of

money that helped to fund new businesses

ColoniesColoniesPREDICT: Why would European

mercantilists want to establish colonies?

1. Control natural resources

2. Establish a market for trade

There are two main reasons:

Impact on SocietyImpact on SocietyTowns and cities grewBusiness activity increasedMerchant class became

wealthier, but most rural people remained poor

CapitalismCapitalismPrivate individuals seeking profit

carry out economic activity.

Joint Stock CompaniesJoint Stock CompaniesInvestors would pool their money

together to fund expensive overseas business ventures

Example: British East India Example: British East India CompanyCompanyFounded in 1600 to import spices

from Asia

Venn Diagram Name: Venn Diagram Name: __________________________________

Mercantilism Capitalism

ACROSTIC SUMMARYACROSTIC SUMMARYMERCANTILISM