World History and CulturesWorld History and Cultures

Columbian ExchangeColumbian Exchange

• In 1493, Christopher Columbus came back In 1493, Christopher Columbus came back to Spain after his first cross to Spain after his first cross AtlanticAtlantic Trip Trip with a number of with a number of plantsplants, food as well as , food as well as slaves– he would make a return trip back to slaves– he would make a return trip back to the the New WorldNew World a year later carrying back a year later carrying back 12001200 settlers, European foods, settlers, European foods, technologytechnology and animals as well as diseases. – This and animals as well as diseases. – This exchange would eventually be called the exchange would eventually be called the Columbian ExchangeColumbian Exchange

Columbian ExchangeColumbian Exchange

• On their trips back from On their trips back from AmericaAmerica, , Europeans brought a number of Europeans brought a number of foods including foods including tomatoestomatoes, pumpkins, , pumpkins, pepperspeppers, corn, beans and , corn, beans and potatoespotatoes..

• Corn, Corn, PotatoesPotatoes, Beans, and , Beans, and TomatoesTomatoes would eventually contribute to would eventually contribute to population growth population growth worldwideworldwide

Important Food from the Important Food from the AmericasAmericas

Columbian ExchangeColumbian Exchange

• Europeans carried a number of things Europeans carried a number of things to the new world such as to the new world such as wheatwheat, and , and grapesgrapes – as well as – as well as bananasbananas and and sugarsugar from Africa and Asia. from Africa and Asia.

• Europeans brought a number of Europeans brought a number of animals that later became fixtures in animals that later became fixtures in the Americas – the Americas – CattleCattle, pigs, goats, , pigs, goats, chickenschickens, donkeys and , donkeys and horseshorses

Commercial RevolutionCommercial Revolution

The opening of direct links with The opening of direct links with AsiaAsia, , AfricaAfrica and the Americas – had a and the Americas – had a many consequences.many consequences.

Commercial Revolution

• One of the major consequences of this increased trade was the rise of inflationinflation—(the economic cycle that involves, a rapid riserise in prices linked to sharp increaseincrease in the amount of money available) – 2 Reasons for this Rise

Commercial Revolution

• One reason was that with the PopulationPopulation growth, the demanddemand for goods and services roserose – goods were scarce – prices went upup

• Another reason was that with New World GoldGold and SilverSilver coming into Europe – that materials turned into currency (CoinsCoins) – which put more money into Circulation

Commercial RevolutionCommercial Revolution

Another consequence of this increased Another consequence of this increased trade was a rise in trade was a rise in CapitalismCapitalism ( (Economic Economic system in which the means of production system in which the means of production are are privatelyprivately owned and operated for owned and operated for profitprofit).).

EntrepreneurEntrepreneur ( (enterprising merchantsenterprising merchants) ) hired workers and paid for hired workers and paid for rawraw materials, materials, transport and costs of transport and costs of productionproduction to launch to launch new businessesnew businesses

Commercial RevolutionCommercial Revolution CapitalistsCapitalists and and EntrepreneursEntrepreneurs made up a new made up a new

business class that focused all of their efforts on business class that focused all of their efforts on making making profitsprofits

New New capitalistscapitalists discovered more ways of creating discovered more ways of creating wealth including – wealth including – Joint Stock CompaniesJoint Stock Companies – – the the companies that were usually backed by the companies that were usually backed by the governmentgovernment allowed people to pool large allowed people to pool large amounts of amounts of capitalcapital needed for overseas needed for overseas venturesventures

CapitalistsCapitalists also used many tactics to cut also used many tactics to cut guildsguilds out of profits – so they could make more profits out of profits – so they could make more profits for themselves – One of these methods were the for themselves – One of these methods were the Putting Out SystemPutting Out System

MercantilismMercantilism

• Mercantilism was a policy in which a nation sought out to exportexport more than it importedimported in order to build its supply of goldgold and silversilver

• It was also aimed at strengthening national economies

• Under Mercantilism, Colonies existed to benefitbenefit their parentparent country. This was followed in a number of ways

MercantilismMercantilism

Colonies were supposed to provide Colonies were supposed to provide resourcesresources and raw materials not available and raw materials not available in Europe – and served as a in Europe – and served as a marketmarket for its for its manufactured goodsmanufactured goods

They could not set up their own They could not set up their own industriesindustries to manufacture goodsto manufacture goods

They were They were forbiddenforbidden from buying from from buying from other other countriescountries

Only ships from the Only ships from the parentparent country or the country or the colonies could be used in the colonies could be used in the coloniescolonies

MercantilismMercantilism• Mercantilist urged

governments to adopt policies to increaseincrease national wealth and revenuesrevenues in their home countries. ----

• Minerals and timber resources were exploited

• New industries were backed• A National currency was

imposed• Monopolies were sold to

large producers• Tariffs (Taxes on important

goods) were imposed

Impact on Ordinary PeopleImpact on Ordinary People

The Impact on the changes of Europe The Impact on the changes of Europe varied. ---varied. ---

Merchants Merchants who invested in the who invested in the venturesventures got richgot rich

NoblesNobles were hurt by the Rise in were hurt by the Rise in InflationInflation – – because their wealth was based on Land because their wealth was based on Land not on not on industryindustry and ventures and ventures

Peasants were not Peasants were not immediatelyimmediately impacted impacted

Impact on Ordinary PeopleImpact on Ordinary People

CitiesCities were dominated by were dominated by merchantsmerchants, , guilds, and guilds, and lawyerslawyers – – MiddleMiddle class class citizens lived well – while citizens lived well – while laborerslaborers would not greatly involved with the would not greatly involved with the increaseincrease of wealth were hit the worst of wealth were hit the worst – – PovertyPoverty increased. increased.

Extra Credit Question – Identify 3 Extra Credit Question – Identify 3 reasons why Christopher Columbus reasons why Christopher Columbus was so important to the Age of was so important to the Age of ExplorationExploration

Helped to prove that the world was round.

Helped to pave the way for future conquistadors in the new world

Created an exchange of materials that transformed the Europe and the Americas