Vocabulary

1. Vocabulary • Columbian Exchange- The Global exchange of ideas, people, plants, animals, and technology that lead to great changes for the people of Asia, Europe, Americas, and Africa. • Commercial Revolution- The growth of business in Europe and America and the emergence of capitalism that took place because of the Columbian Exchange. • Capitalism- Economic system based on private ownership and investment for profit. • Joint Stock Company- Companies that investors would buy stocks in to help the company start a colony in order to make a profit. • Mercantilism- Economic policy in which countries would create colonies in order to create a favorable balance of trade.

2. Warm Up • Describe the difference between the treatment of the Native Americans by the Spanish priests and landowners.

3. The Columbian Exchange and Mercantilism

4. The Columbian Exchange • The Global exchange of people, plants, animals, idea, and technology, began during the colonization of the Americas, leading to profound changes for the people in Asia, the Americas, Africa, and Europe.

5. New wealth from the Americas and the growth in oversees trade combined to create new business and trade practices in Europe. • Together they created a Commercial Revolution and dramatically changed the economic atmosphere in Europe.

6. Unfortunately, other exchanges occurred: • Diseases such as smallpox devastated Native populations in the Americas

7. Effects of Exploration • The establishment of oversees trade and colonies in the Americas promoted new types of business practices to arise in Europe. • One important change was the growth of capitalism: Economic system based on private ownership and investment for profit.

8. Now governments were not the only owners of wealth but private citizens could benefit as well. • Numerous merchants became the new wealthy in Europe. • They then would invest their money further in oversees trade and exploration. • TRIANGULAR TRADE!

9. From this new economy arose companies called Joint Stock Companies. • These worked like modern day corporations in which investors would but up shares of stock in a company. • The more money the company made, the more money the investors made.

10. Another type of economic policy also developed during this time. It was called Mercantilism. The theory of mercantilism said: A country’s power depended on it’s wealth • Wealth allowed nations to build strong navies, armies and purchase necessary goods. • The goal of each nation became: To attain as much wealth as possible

11. According to mercantilism, a country should establish a favorable balance of trade. • This is to sell more goods than it bought. To export more than it imports. • Colonies were vital to this!!! They provided raw materials: Gold, wood, cotton, furs. Colonies not only supplied these raw materials but acted as markets for goods as well.

12. Example: Britain and U.S. Colonies Raw Materials Cotton Textiles Finished Products Mother Country Makes a Huge Profit!! Britain (Mother Country) U.S. Colonies

13. Closing/Reflection • Describe the Columbian Exchange. • What was the Commercial Revolution that took place? • What impact did the Columbian Exchange have the native people? • What new economic system arose in Europe? • What was a Joint Stock Company? • What was Mercantilism?

14. Activity • Using your notes and text books, research what items passed between hemispheres in the Columbian Exchange. • Design a diagram of the Columbian Exchange using ONLY images. You must have 8 images on each side of the diagram. • When your diagram is finished, pick 1 item that went from west to east and one item that went from east to west that your group feels made the biggest impact on society. For each item, write an explanation of why you chose that item and what its impact was. • When finished, hang your poster on the wall, clean your area, sit quietly and begin working on the worksheet.