New Patterns of Trade

1. New Patterns of Trade

2. 1. The Columbian Exchange • pgs. 483-484 • Columbian Exchange is the name historians give this period of time. It is the exchanging of goods between the New World and Europe • Read the section and create a graphic organizer that shows what goods were traded and also the effects of the Columbian Exchange

3. 2. Mercantilism • A New Economic Policy • Mercantilism • Basic principle was that a nation’s wealth depended on its wealth • Wealth was measured by how much gold and silver that a nation possessed • Led to intense competition between nations for wealth during the 1500s and 1600s

4. b. Balance of Trade • Mercantilist believed you should build wealth by two ways: • Extract gold and silver from mines at home or in the colonies • Sell more goods than it bought from foreign countries • Would create a favorable balance of trade

5. ii. There are different approaches to obtain a favorable balance of trade • To reduce the amount of goods imported from other countries by placing tariffs (import taxes) on those goods • Made import goods more expensive than similar goods produce within the nation

6. 2. Encourage exports that could sell for high prices • Manufactured goods sold to other nations at a higher price than new goods • Countries encouraged manufacturing and the export of manufactured goods • Provided subsidies (grants of money) to help business people start new industries

7. 3. Purpose was to control overseas sources of raw material and precious metal • Why was this import? • A country did not need to spend any of its money obtaining raw material • Foreign countries were always considered rivals

8. C. Colonies • Building colonies was essential to mercantilism • Meant to control sources of raw materials and proved new markets for manufactured goods • Only existed to benefit the mother country • Restricted economic activities • Could only buy and sell with the mother country

9. d. Impact of Society • Towns and cities grew as business activity increased • Emergence of wealth merchants who had more power in their towns

10. 3. Rise of Capitalism • Capitalism emerges • Capitalism • It is an economic system • Most economic activity is carried on by private individuals or organizations to seek a profit

11. b. Rising Prices • The demand for goods raised prices • Increased in money supply also raised prices

12. c. A New Business Organization • Joint-stock company • Investors brought shares of stock in the company • Profit and loss was shared among the investors • 1st joint-stock company was The British East India Company

13. The Atlantic Slave TRade

14. 1. The Origins of the Slave Trade • The Atlantic Slave Trade • Plantations • Estates where cash crops (i.e. sugar and tobacco) were grown on a large scale • Native Americans were 1st source of labor for these estates • Indentured Servants • People who worked for a certain period of time in exchange for passage to the Americas • Expensive to maintain

15. 4. African Labor • Forcibly taken to the Americas • Most were from West Africa • Some were supplied by African rulers in exchange for European fire arms • Others were kidnapped by Europeans on slave trade

16. ii. Triangular Trade • Ships carrying European goods to Africa in exchange for slaves • Middle Passage • Journey of Africans to the Americas to be sold as Slaves • OlaudahEquiano • Former slave • Wrote about the horrific conditions for those on the slave ships • 10-20% did not survive the journey • Carried American products such as sugar, rice and tobacco to Europe

17. 2. Slavery in the Colonies • Living Conditions • Most worked on Plantations • Skilled craft workers continued their trade • Women were sometimes given basic domestic duties as servants and cooks • Had to meet their own basic needs (cooking, cleaning, mending clothes) at the end of the work day • Living conditions were harsh • Owners and overseers inflicted physical and degrading punishment for minor offenses

18. b. Resistance • Laws saw slaves as property • Some resisted by trying to keep cultural traditions alive • Some slowed down their work or destroyed equipment • Some revolted • Others escaped and established communities of runaways in remote areas

19. 3. Effects of the Slave Trade a. Read this section and list the effects of the slave trade