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
