The Columbian exchange

1. The Columbian exchange Global Trade

2. Columbian Exchange • Transfer of foods, plants, animals and disease during the colonization of the Americas • Items from the Americas: tomatoes, squash, pineapples, tobacco, cacao beans (chocolate), corn, potatoes, and turkeys • Items from Europe: bananas, black-eyed peas, yams, wheat, rice, barley, oats, horses, cattle, sheep and pigs • Diseases from Europe: smallpox, measles, influenza, typhus, malaria and diphtheria

4. Global Trade • New wave of business and trade practices in Europe during the 16th and 17th centuries • New wealth from the Americas • Dramatic growth in overseas trade •  World trade and colonization created a global economy and capitalism.  • Private speculators financed private sea captains to make them rich.  • Joint stock companies were created to limit risk while maximizing profits for the investors.  • Plantation agriculture worked by slave labor created the world’s first private millionaires.

5. The Rise of Capitalism • European economic revolution resulted in a growth in capitalism • An economic system based on private ownership and the investment of resources, such as money, for profit. • Governments were no longer the sole owners of great wealth • Increase in economic activity led to an overall increase in many nations’ money supply • Led to inflation- the steady rise in the price of goods • Spain suffered greatly during the 1600s from inflation • Boatloads of gold and silver increased the money supply

6. Joint- Stock Companies • Business venture that is similar to a modern day corporation • Investors buy shares of stock in a company • A number of people combining their wealth for a common purpose • During the 16th and 17th century their common purpose was American colonization • High risk, high reward • Many ships never completed the voyage • Risk was spread out among many investors

7. The Growth in Mercantilism • Economic policy that was based on the fact that a country’s power depended mainly on its wealth • Allowed nations to build strong navies and purchase goods • The goal of every nation became the attainment of as much wealth as possible • Obtain as much gold and silver as possible • Establish a favorable balance of trade • Sold more goods than bought • Become self-sufficient, not dependent on other countries for goods

8. Results • Economic changes led to changes in European society • Led to a growth in towns and the rise of a class of merchants who controlled great wealth • Helped expand the power of European monarchs, who became powerful rulers

9. Review past notes and PowerPoint • Look over information covering the Renaissance, the Age of Exploration and American Conquest • Remember the test is Wednesday March 26th