Chapter 16: Section 2

1. Chapter 16: Section 2 • Compass • Joint-stock company • Mercantilism • Favorable balance of trade • Tariffs • Subsidies

2. The Main Idea • ___________________ led to exploration and fostered the growth of a new economy. • Name one from your “Terms to Know”? • Since the ________ • Europeans knew about the _____ in the ________. • Spices • _____ • _____ • These riches were ____________ of trade because of their ________. • Therefore, Europeans began to focus on finding new __________ to the East.

3. Improvements in Technology • To find these sea routes they needed BETTER: • ______ • _____________ • ______ • During the _____________maps improved because of Europeans’ _______________________. • Renaissance? • Ptolemy’s maps showed scholars the __________. • However his maps did not include information on _____ and ______. • These were added during this time period. • And of course the ___________ were not known till later.

4. Mapmaking • Explorers believed that they could reach ______ more easily by sailing _______ across the Atlantic Ocean. • From what we know today, is the west the easiest way to Asia from Europe? • ____________ • If they went west from Europe what countries will they hit? • ____________ • ____________

5. Navigation • Improved navigation instruments: • Would create more _____________ • Allow ships to sail _______________ without getting lost • What is one of them most important instruments during the Age of Exploration? • _______________

6. Navigation • 1100’s, European navigators • Learned they could magnetize an ___________ • They rubbed the needle on a piece of ___________ • Kind of magnetic rock • When they floated the needle on _______, it pointed ________. • Until well into the 1400’s, • long ships called _________ were used by European Sailors. • Galleys could only go the direction the __________. • Sailed mostly along the _______ • To sail against the wind, _____________ were used.

7. New Ships • In the late 1400’s, • _________ and _____________ designers made important advances in technology. • Ships were longer and larger than galleys • Changed size and shape of the sails • Moved the rudder from the side to the rear • Steering device • These changes allowed ships: • To sail against the winds • Move more quickly • Steered easier • More reliable in differently types of weather conditions

8. Economic Changes • During the 1400’s and 1700’s • Europeans changed basic economic practices. • This period is known as the _______________. • Prior to the 1400’s • Value of the coin depended on the _________________________. • Two coins are made of gold: 1 being 50% other being 40%

9. Economic Changes • Italian cities • Produced coins with _____________ • Gold florin of Florence and the ducat of Venice became very dependable. • These fixed coins allowed banks to store large sums of money to promote exploring overseas. • During the Commercial Revolution • Merchants joined together to create a ____________________. • Owners raised money by selling shares, or stock, in the company. • Investors who bought the shares became co-owners and ____________________. • The more shares the more they profited • Joint-stock companies • Raised large sums of ____________________

10. Mercantilism • Economic and political changes linked to overseas expansion contributed to a new economic theory: • ___________________ • A country’s government should do all it could to increase the country’s wealth, which is measured by: • The amount of gold and silver the country possessed • To increase its own wealth, one country had to take wealth from another country.

11. Balance of trade • According to mercantilists, a country could build wealth in two ways: • 1) ___________________________ • 2) ___________________________ • Creating a _______________________. • Country received more gold/silver from other nations than it paid to them. • Strengthened the country and weakened its foreign rivals.

12. Balance of trade • To achieve a favorable balance of trade, countries could do: • Place __________ on goods coming from other countries • Example of a TV from China v. here • _________________ and the export of manufactured goods. • Provided ___________ or grants of money to • Businesspeople to start new industries and build ships • ______________________ sources of raw materials and precious metals. • Therefore they did not have to rely to import them from competing nations. • _____________ • Were rich in gold, silver and raw materials that could not be produced in Europe (home). • A powerful nation, • Bought the raw materials from its own colonies. • Why? • The money stayed with its own people.