Download Europeans Expansion and Business

Age of Exploration – Mercantilism
7-1.4
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1. Export
2. Import
3. Mercantilism
4. Capitalism
5. Market Economy
6. Balance of Trade
7. Tariffs
8. Middle Class
9. Entrepreneur
10. Capital
11. Market
Europeans Expansion
and Business
Standard 7-1.3 and 7.1.4
1. Economic Changes in Europe
Resulted from……..
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1. Growth of International Trade
2. Discovery and colonization of New World
3. Growing Middle Class
4. Complex Economy
The Columbian Exchange
A.
Is the movement of goods, ideas, people, and
disease across the Atlantic
2. Mercantilism
A.
B.
Europeans countries - the more bullion (gold
and silver) you had the more powerful you
were.
Government sought to control and regulate
trade- balance of trade.
3. Mercantilism step-by-step
1. Export more than you import.
2. Build colonies- countries get raw
materials and products needed -so you can
export them and provide a market for finished
products.
3. Use high tariffs to keep foreign goods
out
4. Colonies can only trade with the mother
country.
4. Commercial Revolution
A.
B.
C.
Supply and Demand became important
High Supply and Low Demand- Price is
lower.
Low Supply and High Demand- Price is
higher.
Entrepreneurs
A.
B.
Entrepreneurs risk money in hopes of earning
a profit.
Some projects were too large for one person
so joint-stock companies were formed.
New Class of People- Middle
Class
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Merchants and businessmen
Take risks to make a profit off of international
trade
Contributed to a growing market economy
5. What is a market economy?
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Economic system based on the exchange of
goods and services for the purpose of making
capital- money
The market place
6. What creates Capitalism?
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Mercantilism
International Trade
Rise of the middle class
Developing market economy
Relying on people not governments to own
property, make goods and buy and sell them
freely
Driven by the desire to make a profit.