Chapter 3 Section 5 NotesChapter 3 Section 5 NotesChanges in Europe Changes in Europe

Global Exchange or the Global Exchange or the Columbian ExchangeColumbian Exchange

Started when Columbus brought European Started when Columbus brought European goods with him to America and goods back to goods with him to America and goods back to EuropeEurope

Included people, plants, animals, technology Included people, plants, animals, technology and diseaseand disease

From America- tomatoes, pumpkin, peppers, From America- tomatoes, pumpkin, peppers, corn, potatocorn, potato

From Europe- wheat, grapes, bananas, sugar, From Europe- wheat, grapes, bananas, sugar, cattle, pigs, goats, chickens, and horsescattle, pigs, goats, chickens, and horses

A Commercial RevolutionA Commercial Revolution

The Price RevolutionThe Price Revolution Inflation- a rise in Inflation- a rise in

prices linked to a prices linked to a sharp increase in the sharp increase in the amount of money amount of money available. available.

Caused by an Caused by an increase in demand increase in demand for goods and for goods and increased money in increased money in circulationcirculation

A Commercial RevolutionA Commercial Revolution Growth of CapitalismGrowth of Capitalism

capitalism- type of economic system capitalism- type of economic system in which the means of production in which the means of production are privately owned for profitare privately owned for profit

A Commercial RevolutionA Commercial Revolution

New Business methodsNew Business methods bookkeeping to keep track of profits bookkeeping to keep track of profits

and lossesand losses banks- wealthy merchants could lend banks- wealthy merchants could lend

money with interestmoney with interest joint stock company- private trading joint stock company- private trading

company in which shares are sold to company in which shares are sold to investors to finance business venturesinvestors to finance business ventures

MercantilismMercantilism

Mercantilism- Mercantilism- nations export nations export more goods than more goods than it importsit imports

Role of Colonies- Role of Colonies- colonies existed colonies existed for the benefit of for the benefit of the parent the parent country, thus, country, thus, trade was strictly trade was strictly controlledcontrolled

Lives of Ordinary PeopleLives of Ordinary People merchants did well, but this hurt nobles merchants did well, but this hurt nobles

whose wealth was tied up in the landwhose wealth was tied up in the land wages of hired workers did not keep up with wages of hired workers did not keep up with

inflation, creating poverty and discontentinflation, creating poverty and discontent Middle class families tended to do wellMiddle class families tended to do well