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The Columbian Exchange

Published on Feb 03, 2016

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PRESENTATION OUTLINE

The Columbian Exchange

New Patterns of Trade
Photo by Travis S.

Columbian Exchange:
the transfer of plants, animals and diseases between the Americas and Europe/Asia/Africa

Photo by libervisco

Benefits:

  • Foods - fruits, coffee, sugar, wheat
  • Animals - horses, cattle, pigs, house cats
  • Culture - religion, language, technology
Photo by nffcnnr

Negatives

  • Diseases - Cholera, influenza, malaria, measles, smallpox
  • Slavery
  • War

Introduction of new products led to changed in the European economy

Photo by @Doug88888

Mercantilism:
An economic system that held that a nation's power was directly related to its wealth.

Photo by sirqitous

Goal of Mercantilism

Stock up on Bullion (gold&silver)
Photo by widatama

How to get Wealth?

  • Extract gold and silver from mines (often from colonies)
  • Create a favorable balance of trade - sell more goods than it buys

How to create a favorable balance of trade

  • Reduce the amount of goods imported by placing tariffs (import taxes
  • Encourage exports that could sell for high prices
  • Control overseas sources of raw materials/precious metals

Colonies became important tools to create a favorable balance of trade for mercantilism.

Rise of Capitalism

  • Capitalism - economic system in which most businesses are privately owned.
  • Inflation (rising prices) - Rise in demand rose prices
  • Joint-Stock Companies grew - Allowed for mega companies