BELLRINGER: 10/9Get out your Age of

Exploration/Discovery Vocab and study for your vocab quiz.

AGENDA: 10/9**SHORT CLASS TODAY**1. Vocabulary Quiz2. Notes: Columbian Exchange3. Study Guide: Age of Exploration

HOMEWORK: Complete study guide; review for mini-test on Age of Exploration on 10/16Next class for Block 1

Ms. AllenWHII2015-16

KEY QUESTION: What is the Columbian Exchange and how did it change the world?

The introduction of the horse provided people in the Americas with a new source of labor and transportation.

• Voyages launched large-scale contact between Europe and Americas.

• Interaction with Native Americans led to sweeping cultural changes.

• Contact between the two groups led to the widespread exchange of plants, animals, and disease—the Columbian Exchange.

• Plants, animals developed in very different ways in hemispheres

• Europeans—no potatoes, corn, sweet potatoes, turkeys

• People in Americas—no coffee, oranges, rice, wheat, sheep, cattle

The Exchange of Goods

The Columbian Exchange

• Arrival of Europeans in Americas changed all this

• Previously unknown foods taken back to Europe

• Familiar foods brought to Americas by colonists

Sharing Discoveries

Impact on Native Americans

Europeans were learning of the profitability of the plantation system – relying on what?Economic benefit of using local forced labor

Disease – Europeans, unknowingly brought measles, mumps, chickenpox, smallpox, typhus and othersThe local people had no built-up natural immunity

to these diseases yet

Impact on AfricansWith decline of native work force, labor was

needed from elsewhere.

Slave trade exploded, especially in W. AfricaOver the next 300 years (1500-1800) approx. 10

million people were taken

Impact on EuropeansEuropeans began to cross the Atlantic creating

one of the largest voluntary migrations in world history.

Overseas expansion inflamed national rivalries in Europe causing conflict.Treaty of Tordesillas, 1494 (Spain Vs. Portugal)

Growth of trade markets completely changed the world FOREVER!

The Exchange was positive and negative in its effects:

Different Foods

• Over time crops native to Americas became staples in diets of Europeans

• Foods provided substantial nutrition, helped people live longer

• Scholars estimate one-third of all food crops grown in world are of American origin

Italian Food Without Tomatoes?

• Until contact with Americas, Europeans had never tried tomatoes

• Most Europeans thought tomatoes poisonous

• By late 1600s, tomatoes had begun to be included in Italian cookbooks

Economics and Gastronomics

• Activities like Texas cattle ranching, Brazilian coffee growing not possible without Columbian Exchange; cows, coffee native to Old World

• Traditional cuisines changed because of Columbian Exchange

Positive Effects:

Negative Effects:

In the exchange that started along the coast of Newfoundland and was made widespread by Columbus, disease was the most negative for the Native American population

Fatality rate over a period of two to three generations was 95% for many tribal groups

In some cases, as in the Mohegans case, the fatality rate could be 100 percent

Devastating Impact

• Native American population continued to decline for centuries

• Inca Empire decreased from 13 million in 1492 to 2 million in 1600

• North American population fell from 2 million in 1492 to 500,000 in 1900—but disease not only factor in decrease of population

• Intermittent warfare, other violence also contributed

The Introduction of New Diseases

• Native Americans had no natural resistance to European diseases

• Smallpox, measles, influenza, malaria killed millions

• Population of central Mexico may have decreased by more than 30 percent in the 10 years following first contact with Europeans

Old World DiseasesEuropean disease was particularly

virulentSmallpox, measles, diphtheria, whooping

cough, chicken pox, bubonic plague, scarlet fever and influenza were the most common diseases

Nearly all of the European diseases were communicable by air and touch.

The pathway of these diseases was invisible to both Indians and Europeans

Europeans believed that it was God’s will that Indians diedNo germ theory at the time of contact. Illness in Europe was considered to be the

consequence of sinIndians, who were largely “heathen” or non-

Christian were regarded as sinners thus subject to illness as a punishment

• Wealth measured by amount of gold, silver possessed by nation

• Mercantilists believed there was fixed amount of wealth in world

• For one nation to become wealthier, more powerful—had to take wealth, power away from another nation

• Mercantilism led to intense competition between nations

Intense Competition

• Founding of colonies, new goods in Europe led to significant changes

• 1500s, Europeans developed new economic policy, mercantilism

• Nation’s strength depended on its wealth

• Wealthy nation had power for military and expanded influence

New Economic Policy

Mercantilism

• Mercantilists built wealth two ways—•1) extract gold, silver from mines at home, in colonies; •2) sell more goods than it bought from foreign countries, creating favorable balance of trade

• With favorable balance of trade, country received more gold, silver from other nations than it paid to them

• Increased its power; weakened foreign competitors

• To achieve favorable balance of trade, could reduce amount of imports by placing tariffs on goods

• Importer paid tariff, added cost to price of good

• Imported goods more expensive, discouraged people from buying

Imports

• Encourage exports that could sell for higher prices than raw materials

• Countries encouraged manufacturing and export of manufactured goods

• Governments provided subsidies to help start new industries

Exports

Balance of Trade

Building colonial empires essential to mercantilist system

• European powers wanted to establish colonies

– To control sources of raw materials

– To provide new markets for manufactured goods

• To mercantilist, colonies existed only to benefit home country

Colonies • Monarchs restricted economic

activities in colonies

• Colonists could not sell raw materials to other countries

• Could not buy manufactured goods from other nations

• Strict laws forbade colonies from manufacturing goods

• Forced to buy only from home country

Strict Laws

Colonies

Commercial RevolutionWhat: The transition (change) from

Mercantilism & then to Capitalism IS the

COMMERCIAL REVOLUTION

When: 16th -17th centuriesWho/Where: Europeans & European

countries & coloniesWhy?: changes in commerce (trade) & money

making methodsChanges in the power structure btwn

countries

Why Care?:Influenced today’s financial dealings (the way we do business)

Commercial RevolutionThe shift from mercantilism to capitalism is called

the Commercial Revolution. CAUSE:

Happens because of changes in commerce (trade) and money-making practices

EFFECTS: set the stage for the development of CAPITALISMBasis of today’s financial practices

Increasing trade between Europe and colonies created new business and trade practices during the 1500s and 1600s. These practices would have a great impact on the economies of European nations.

• In capitalism, most economic activity carried on by private individuals, organizations in order to seek profit

• During this time, capitalism expanded

Capitalism Emerges

• Individuals amassed great trade fortunes

• Merchants supplied colonists with European goods

• Returned products, raw materials

Overseas TRADE

• Overseas trade made many merchants rich

• Wealth enabled them to invest in more business ventures

• Business activity in Europe increased greatly

Increased

BUSINESS ACTIVITY

The Rise of Capitalism

Money Supply

• Increase of money supply another factor in higher prices (INFLATION)

• Shiploads of gold, silver flowed into Europe from Americas to be made into new coins

• Over time, increase of money in circulation pushed prices for goods still higher

Rising Prices (INFLATION)

• Investors took risks of investing in overseas trade because of inflation

• Inflation: steady increase in prices

• Demand for goods increased due to growing population, scarcity of goods; rising demand drove prices higher

New Ventures

• Overseas business ventures often too expensive for individual investors

• Investors began pooling money in joint-stock companies

Shares

• Profit, loss based on number of shares owned

• If company failed, investors lost only amount invested

Joint-Stock Companies

• Investors bought shares of stock in company

• If company made profit, each shareholder received portion

Financing Colonies

• British East India Company, one of first joint-stock companies

• 1600, imported spices from Asia

• Others formed to bear cost of establishing colonies

A New Business Organization

So… What is CAPITALISM?Economic System based on:

private ownership & investment of wealth for profitFree Trade

Cause: overseas colonization & trade = lots of merchants getting RICH!And… they continued to invest in trade to get

RICHER (increase profits)AND then… they re-invested more to get even

RICHER!