Changes in Europe

1. Changes in Europe Unit 3 Section 8 Age of Exploration Essential Standards: Analyze the causes for exploration and the effects of increased global interaction and trade between the nations in Europe, Asia, Americas, and Africa . Analyze colonization in terms of the desire for access to resources and markets as well as the consequences on cultures, population, & environment. I can: understand how the desire for wealth, resources, markets, and the Crusades, fueled by advances in technology, leads to global exploration, exchange of goods & ideas are contributing factors to mercantilism , capitalism and colonization.

2. The Columbian Exchange • When Columbus returned to Spain in 1493, he brought w/ him “new” plants (tomatoes, pumpkins, peppers, corn & potatoes) & animals. Later that year, he returned to the Americasw/ some 1,200 settlers & a collection of European animals (cattle, goats, pigs, chickens, horses & donkeys) & plants (Wheat, grapes, bananas & sugar cane). • In this way, Columbus began a vast global exchange that would have a profound effect on the world.

3. The Columbian Exchange

4. A Commercial Revolution • The opening of direct links w/Asia, Africa, & the Americas had far-reaching economic consequences for Europeans. Prices began to rise in Europe, as part of the cycle of inflation. • European inflation had several causes: • As the pop. grew, the demand for goods & services rose. • Because goods were scarce, sellers could raise their prices. • The increased flow of gold & silver from the Americas led to more money in circulation.

6. Expanded trade & the push for overseas empires spurred the growth of European capitalism, the investment of money to make a profit. • Entrepreneurs & capitalists made up a new business class. Together they helped change the local European economy into an international trading system. • Joint Stock Company Allowed people to pool large sums of capital needed for investment & overseas adventure.

8. Mercantilism: European monarchs adopted a new economic policy, known as mercantilism, aimed at strengthening their national economies. • According to mercantilism, a nation’s real wealth is measured in its gold & silver treasure. To build its supply of gold & silver, a nation must export more goods than it imports.

9. Overseas empires & colonies existed for the benefit of the parent nation. Rulers needed to adopt policies to increase national wealth & gov’t revenues. • To achieve these goals, European gov’ts • passed strict laws regulating trade with their colonies. Exploited natural resources, built roads, & backed new industries. • sold monopolies to large producers in certain areas. Imposed tariffs, or taxes on imported goods.

10. The impact of economic change depended on a person’s social class. • Merchants who invested in overseas ventures acquired wealth. • Nobles, whose wealth was in land, were hurt by the price revolution. • Hired workers in towns & cities faced poverty & discontent when their wages did not keep up w/ inflation. • Peasants, the majority of Europeans, were not affected until centuries later. • W/n Europe’s growing cities, there were great differences in wealth and power.