New Patterns of Trade

1
New Patterns of Trade
2
Name _________________________
COLUMBIAN EXCHANGE
BALANCE OF TRADE
JOINT STOCK COMPANIES
MERCANTILISM
3
Main Idea

• The creation of colonies in the Americas and
  elsewhere led to the exchange of new types of
  goods, the establishment of new patterns of
  trade, and new economic systems in Europe.

4
LEQ

• How did the creation of colonies lead to the
  exchange of new types of goods, new patterns of
  trade, and new economic systems?

5
FOCUS QUESTIONS?

• How did exploration
• result in a new exchange
• of plants and animals?
• What was mercantilism and how did it push the
  drive to establish colonies?
• How did global trade lead to the rise of
  capitalism in Europe?

6
Key Terms

• Columbian Exchange
• Mercantilism
• Balance of trade
• Subsidies
• Capitalism
• Joint-stock companies

7
On a scale of 1 to 10, with 10 being the highest,
how much do you like chocolate?
8
Now that you have tasted chocolate, could you
imagine your life without it?
9
Europeans only tasted chocolate for the first
time in the 1500s!
10
Chocolate Drinks made by Aztecs

• Cortes actually found the Aztec chocolate to be
  bitter.
• The Aztec beverage did not include sugar or milk.

11

• An Aztec noblewoman pouring a chocolate drink
  from the Codex Tudela.

12
Codex Tedula Aztec Calendar
13
Dominican Friars Add Sugar

• Brought their beverage to Prince Philip of Spain.
• Chocolate drinks instantly become one of the
  favorite beverages of the Spanish nobility.

14
A European Love For Chocolate is Born!

• Chocolate remained a treat for the wealthy and
  drinking it was a sign of high status.

15
Columbian Exchange

• The arrival of colonists and their interaction
  with Native Americans led to sweeping cultural
  changes in both societies.

16
(No Transcript)
17

18
The Exchange of Goods

• Due to isolation, plants and animals evolved
  differently
• Europeans had never known foods like potatoes,
  corn, sweet potatoes, or turkeys.
• Native Americans had never known coffee, oranges,
  rice, wheat, sheep or cattle

19
Animals

• Americas llamas, turkeys and guinea pigs
• Europe horses, donkeys, pigs, rabbits and cattle

Proud to be an American
20
Effects of the Columbian Exchange

• Exchanged foods become staples.
• Increased nutrition
• Increased economic activity
• Increased occurrence of diseases

21

• Case in point Can you name three main dishes,
  that you might find on an Italian menu, that does
  not include tomatoes?

22
2nd case in point

• China Name two basic facts about China.

• Their massive population is due, in part, to the
  arrival of corn.

23
Population Growth
China West Europe
24
New Diseases

• Native Americans had no natural resistance to
  European diseases such as small pox, measles,
  influenza, and malaria.

25
Diseases
26
Check for Understanding

• What were two lasting effects of Columbian
  Exchange?

27
Mercantilism

• An economic policy whereas a nations strength
  depended upon its wealth.
• EXAMPLE A wealthy nation can build a strong
  military and can therefore protect and expand its
  influence.

28
(No Transcript)
29
Balance of Trade

• Acquired in two ways
• 1. harvest gold and silver from the colonies
• 2. sell more goods than you buy

30
Creating a Favorable Balance of Trade

• Impose tariffs reduces imports
• Increase exports sell finished goods to nations
  for higher prices than the raw materials ie,
  woolen cloth
• Control raw materials
• Encourage subsidies

31
EXAMPLE Reducing Imports
32
Subsidies

• Government provided grants of money that helped
  to fund new businesses

33
Colonies

• PREDICT Why would European mercantilists want to
  establish colonies?

There are two main reasons
1. Control natural resources
2. Establish a market for trade
34
Impact on Society

• Towns and cities grew
• Business activity increased
• Merchant class became wealthier, but most rural
  people remained poor

35
Capitalism

• Private individuals seeking profit carry out
  economic activity.

36
Joint Stock Companies

• Investors would pool their money together to fund
  expensive overseas business ventures

37
Example British East India Company

• Founded in 1600 to import spices from Asia

38
Venn Diagram Name _________________
Mercantilism Capitalism
39
ACROSTIC SUMMARY

• M
• E
• R
• C
• A
• N
• T
• I
• L
• I
• S
• M