COLUMBIAN EXCHANGE

Columbian Exchange = Global transfer of food, plants, animals, people, and disease during colonization of the Americas

CAPITALISM

Capitalism = Economic system based on private ownership and investment of resources for profit

Capitalism in action during colonization of Americas: merchants obtain great wealth from overseas colonization and trade continue to invest money in more overseas exploration, trade , and other enterprises business in general across Europe grows and European nations become wealthy

JOINT STOCK COMPANY

Joint stock company = a business venture that involved a number of people combining wealth for a common purpose.

ADVANTAGES OF JOINT STOCK COMPANY

1. Combined wealth is more wealth than one individual

2. Risk is shared

MERCANTILISM

Mercantilism = Economic policy adopted by European nations in the 1500s which provided that a country’s power depended mainly on its wealth.

How Acquire Wealth According to Mercantilism?

1. Obtain as much gold and silver as possible2. Establish a favorable balance of trade

American Colonies Vital Role in Mercantilism

• Provided gold and silver• Provided raw materials that were not readily

available in Europe• Served as a market for European

manufactured goods

Who Benefited the Most from Global Effects of Colonization?

• Merchant class (got wealthy and powerful)• European nations (got wealthy and powerful)• European monarchs (got more powerful)

Who Suffered the Most Because from Global Effects of Colonization?

• Majority of Europeans (remained poor)• Entire population of Native Americans

(practically wiped out and lost land and culture)

• Approximately 9.5 million Africans (enslaved for almost 400 years in the Americas)