Honors World History A 13.5

Which of the following can you infer based on the system of European mercantilism?

Europe depleted many of it's natural resources

How did European colonization affect Native Americans?

European colonization not only deprived Native Americans of their traditional lands but also led to the enslavement and deaths of most of the native population. Many were taken to work on plantations. Over the course of colonization, millions died from forced labor, through conflict, and as a result of diseases brought from Europe.

What was the "fowl exchange"?

Europeans brought chickens to the Americas and took turkeys back to Europe.

Which approach did mercantilists encourage European rulers to take toward natural resources in the American colonies?

Exploit them fully to achieve maximum profit for the parent country

What was an effect of the movement of foods like corn and potatoes from the Western Hemisphere to the Eastern Hemisphere?

Foods from the Americas contributed to populate growth around the world

How does the free enterprise system operate in the U.S. economy today? What are some benefits and problems of the American free enterprise system?

Free enterprise operates through private property, individual profit, free competition, prices set by market conditions, stock market, banking, and limited government regulations. Benefits include economic freedoms, innovation, business and investment opportunities, social mobility. Problems may include excessive regulations, high prices, unbalanced distribution of wealth, poverty for some.

Did Smith think that increased global contact was generally a good thing or a bad thing? How does he make his opinion on this clear?

He thought it was good. He says that European voyages were the "greatest and most important events."

Thinking about global contact in the world today, do you agree or disagree with Smith about the effects of global contact? Why?

I agree. People today benefit from international communication, travel, and trade. I disagree. Greater contact has led to widespread conflict and international warfare. Foods, plants, animals, and products were exchanged between Europe and America that had the beneficial results of introducing new dietary supplies to both areas, which could relieve each other's wants and increase each other's enjoyments. They also encouraged each other's industries by opening new markets to each other. However, international exchange also introduced diseases that decimated Native American populations.

How did geographic factors shape the mercantilist system?

Mercantilism depended on a relationship between colonizing powers and their colonies. Colonies supplied imperial nations with raw materials not available (or in short supply) in those countries. They had a geographic advantage in this regard. The countries could then use those materials to produce and sell goods to their colonies. The trade system, dependent on shipping, also supported merchants, shippers, and shipbuilders, among others.

Compare capitalism and mercantilism. How was mercantilism consistent or inconsistent with capitalist principles? How so?

Mercantilism is inconsistent with capitalism in that mercantilist governments regulated trade and used tariffs to limit free trade.

Consider advantages and disadvantages of free enterprise and mercantilism. Who were some people that benefited from those economic developments? Who were some people who experienced problems because of the economic developments?

Middle and upper class entrepreneurs profited the most. Their hired laborers earned wages, but were often poorly paid. Nobles may not have profited much because their wealth was based on land and not business ventures.

Which of the following was an effect of the Columbian Exchange on population?

Millions of people moved to the Americas

Differentiate between positive and negative effects of the Columbian Exchange. What were some positive effects? Negative effects?

Positive: New foods enriched diet. Negative: Diseases spread.

Which statement correctly summarizes an economic development that was part of the Commercial Revolution in the 1500's?

Prices rose as more money, silver, and gold became available

In your own words, explain what you think Smith means when he describes some of the specific effects of increased global contact.

Smith was talking about increased trade and industry, which provided goods that people wanted and enjoyed.

What was the impact of the slave trade?

The Atlantic slave trade led to the forced migration of as many as 11 million Africans from Africa to the Americas. The Middle Passage might have claimed as many as two million lives. Many others died in the Americas through forced labor, punishments, illness, and conflict. In Africa, the slave trade led to conflict among some peoples, and to rise of powerful states that profited from the trade. The slave trade also contributed African culture and traditions to the Americas, leading the inclusion of African beliefs, language, customs, and other elements of culture in an emergent American culture.

a way of organizing an economy so that the things that are used to make and transport products (such as land, oil, factories, ships, etc.) are owned by individual people and companies rather than by the government

capitalism

person who assumes financial risk in the hope of making a profit

entrepreneur

an economic system, also known as capitalism, in which private businesses are able to compete with each other with little control by government. Products, prices, and services are driven by free market laws of supply and demand rather than government regulations.

free enterprise system

hat did Europe, Africa, and the Americas exchange in the Columbian Exchange?

fruits, vegetables, grains, and other plants; livestock, honeybees, and other animals and insects; diseases; people

Given what you know about trade, what else do you think these different parts of the world exchanged through trade and migration?

ideas, knowledge, technology, traditions, language, religious beliefs, and other elements of culture

economic cycle that involves a rapid rise in prices linked to a sharp increase in the amount of money available

inflation

policy by which a nation sought to export more than it imported in order to build its supply of gold and silver

mercantilism

period in European history when inflation rose rapidly

price revolution

tax on imported goods

tariff

Which of the following are the most likely reasons a colony's forested land were attractive to Europeans? Select all that apply

-Farmers could use timber to build houses or sell -Shipbuilders could use forest wood to repair and construct merchant ships

Which of the following circumstances led to Europe's Commercial Revolution?

An influx of gold and silver from the Americas increased the money supply

What economic changes came during the Commercial Revolution?

As part of the Commercial Revolution, capitalist free enterprise principles gradually replaced economic systems of the past. Individuals were free to make more economic choices, to borrow and invest money in business ventures, to take risks and compete in the marketplace, and to buy and sell goods priced by the interaction of supply and demand. The profit motive spurred more investment, more business, and more jobs.

How did the "putting-out" system work?

Capitalist entrepreneurs used the putting-out system to bypass the guild system that regulated production of goods in towns. Under this system, also known as "cottage industry," a capitalist might distribute raw wool to peasant cottages. Cottagers spun the wool into thread and then wove it into cloth. Merchants bought the wool cloth from the peasants and sent it to the city for finishing and dyeing. Finally, the merchants sold the finished product for a profit. Merchants provided the capital or money to invest in the business, and cottagers did the labor.

How did capitalists and mercantilists have different points of view on government regulation of the economy?

Capitalists generally opposed strict government regulation of the economy. They preferred economic freedom and the principles of free enterprise whereby individuals make economic decisions and free market principles guide the economy. Mercantilists generally favored government regulations that would regulate colonial economies to increase the national wealth of the parent country.

the global exchange of goods, ideas, plants and animals, and disease that began with Columbus's journey to the Americas

Colombian Exchange

a period of European economic expansion, colonialism, and mercantilism that lasted from about the 1500s until the early 1700s; It included the growth of capitalism, banking, and investing

Commercial Revolution

What are some modern-day examples of joint stock companies? Both in the past and today, what are the potential risks and rewards for investors?

Corporations that sell shares in the stock market are similar to joint stock companies. Risks include loss of investment and debt; rewards include profits and more money for future business ventures and investments.

How does the movement of people, culture, goods, plants, animals, and ideas from the 1400s through the 1700s still shape the world you live in today?

The movement of people and culture shaped the cultures of several continents for centuries to come. European conquest led to the massive relocation not only of European people but also of Africans. It also decimated Native American populations. Modern nations in the Americas, especially, would look very different today had these events not occurred. Many nations, including the United States, would not exist in their present forms. The Columbian Exchange of animals and plants also changed environments, which, in turn, impacted food and other elements of culture. Trade contributed to the rise of the Commercial Revolution, which spurred the development of modern capitalism.

According to mercantilists, what was the purpose of colonies?

To provide inexpensive resources and raw materials to parent countries