The Comlumbian Exchange and Global Trade

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The Comlumbian Exchange and Global Trade

The Columbian Exchange

Europeans brought diseases such as the measles and smallpox with them during the Columbian Exchange, which greatly affected Native Americans.

Africans introduced bananas, black-eyed peas, yams, wheat, rice, narley, and oats to the Americas.

Europeans introduced horses, cattle, sheep, and pigs to America.

The most important items to come from the Americas were potatoes and corn.

Brought tomatoes, squash, pineapples, tobacco, cacao beans, and turkey to Europe, Asia, and Africa. These goods were completely new to them.

The global transfer of foods, plants, and animals during the colonization of the Americas is known as the Columbian Exchange.

The Growth of Mercantilism

In this time, Europe developed a new policy called mercantilism, The belief of mercantilism was that a country's power depended on its wealth. The goal of every nation became to attain as much wealth as possible.

According to the theory, a country could increase it's power by having as much gold and silver as possible, and having a favorable balance of trade.

Colonies played a vital role in mercantilism. Colonies provided raw materials such as wood and furs and also provided a market.

This new idea caused many changes in European society. It spurred the growth of towns and the rise of a class of merchants who controlled great wealth.

Although many became rich through this new philosophy, the majority of Europeans remained poor.

Global Trade

In the 1500's and 1600's the common purpose was to colonize America. This took large amounts of money. While the profits were great if the colony succeeded, the risks were just as large. For example, many ships couldn't complete the long and dangerous voyage.

SInce joint-stock companies had multiple investors, the individual member sonly paid a part of the total cost for colonization. If the colony failed, they only lost their share. If the colony succeeded, they all shared the profits. Jamestown, England's first North American colony, was founded by a joint-stock company

Another buisness venture that developed in this time was the joint-stock company. This worked like a modern-day corporation.

The increase in economic activity led to an overall increase in many nations' money supply, which in turn led to inflation.

Due to overseas colonization and trade, merchants recieved great wealth. Merchants continued to invest their money into colonization and overseas trade. These profits caused European buisnesses to flourish.

Capitalism is an economic system based on private ownership and the investment of resources, such as money, for profit.

New wealth and overseas trade prompted a wave of new buisness and trade practices in Europe during the 16th and 17th centuries.