Ch. 20 Section 4

What was the effect of the growth of mercantilism?

Colonial empires are born (Ex: Great Britain, Spain, Portugal)

What was the cause of the Columbian exchange?

Colonization of the Americas

What were the causes of global trade?

Columbian exchange Establishments of colonial empires Increase in wealth of countries

What was the cause of the growth of mercantilism?

Desire for power, wealth, and self-suffiency

What were the effects of global trade?

Growth of towns Rise of merchant class Rise of capitalism

What were the causes of the formation of joint-stock companies?

Increase in cost of colonization Need to reduce potential losses

What were the causes of inflation?

Increase in gold and silver Increased demand for goods

What were the effects of the Columbian exchange?

Introduction of new products Disease and Death Changes in diets of people

What was the effect of the formation of joint-stock companies?

Jamestown formed

What were the effects of inflation?

Scarcity of goods Rise in prices

an economic system based on private ownership and the investment of resources, such as money, for profit.

capitalism

a system in which you sell more goods than you buy

favorable balance of trade

a company where investors buy shares of stock in a company

joint-stock company

a country's power depended on its wealth

mercantilism