European Expansion & Business

Transcription

1 European Expansion & Business This PowerPoint contains information on the Columbian Exchange, Mercantilism, the Commercial Revolution, the rise of Entrepreneurs, and the beginning of Capitalism during the 1600 s.

2 After exploration and colonization, Europeans started trading with Africans and Americans. This started the COLUMBIAN EXCHANGE. I believe I can make money by trading products internationally!

3 COLUMBIAN EXCHANGE The movement of goods, people, ideas, and even some diseases across the Atlantic.

4 What agricultural products were brought to the Americas from Africa, Europe, and Asia? What cash crops were brought from the Americas across the Atlantic Ocean? How is this diagram of the Columbian Exchange trade different from the Triangular Trade? How is it similar?

5 I want to take this much money and make MORE! Trade offered opportunities for nations to make MONEY! The merchants on trade ships were also making a lot of MONEY!

6 MERCANTILISM Mercantilism is an economic theory that explains how nations could become rich. The theory says: A nation can become powerful if they have a lot of BULLION, or gold and silver.

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8 MERCANTILISM Export more than they Import. which means SELL more than they BUY

9 MERCANTILISM Build colonies in other areas of the world that have natural resources that can be taken rather than purchased. After England builds colonies in America, let s move there and help the government take the natural resources so they can make money!

10 MERCANTILISM Keep foreign made products out of their country or charge them a higher tax, so that their products are less expensive than competing nations! Pay the tariff or KEEP OUT!

11 MERCANTILISM Make colonies purchase items just from their ruling country. It will increase the country s exports.

12 Writing Assignment Pretend you are a merchant. Choose a product you would want to sell to make money. Use the mercantilism model to explain how you d become rich selling this product. Use your notes and what you just learned about mercantilism to do so. Consider what natural resources you ll need and who would buy your product.

13 Commercial Revolution A commercial revolution means that there is a change in commerce. Commerce is the buying and selling of goods in large quantities over long distances. Can you think of any other examples in history when goods were traded over long distances?

14 Supply and Demand In order to make money, merchants had to make decisions based on the law of SUPPLY & DEMAND.

15 Supply and Demand RULE #1: If something is scarce, or difficult to get, people may pay a lot of money for it. Basketball Basketball Signed by someone FAMOUS!

16 Supply and Demand RULE #2: If a business has a large quantity of something and people do not want it, the price will be low. Tickets to the cinema to see an old movie. Vs. Tickets to see Britney Spears in concert.

17 How would a smart merchant use the laws of supply and demand to make money?

18 Merchants would find goods that were cheap in one place and in high demand somewhere else in the world. [Insert British Accent] Would you like a spot of tea? For example: The Caribbean had a lot of sugar, so it was cheap. Sugar didn t grow in Europe so the Europeans would pay merchants a lot of money for sugar.

19 Entrepreneurs Commerce, the buying and selling of goods, led to the rise of a business person called an entrepreneur. Entrepreneurs risk money in hopes of earning a profit. Discuss: How do people today risk money in hopes of earning a profit compared to entrepreneurs during the 1600 s?

20 Joint-Stock Company When business ideas were too risky or expensive for one person, people formed joint-stock companies. This allowed people to buy stock in a company, which means they own part of the company and will share in its profit or loss. For example: If a trading voyage was successful, all the stock holders made money. If it was unsuccessful, everyone lost money. Why would this be appealing to business people?

21 Joint-Stock Company Let s pretend we are all entrepreneurs in the 1980 s. We want to invest in cellular phones, but it s risky. We decide to invest in a company called APPLE. Stocks are selling at $100 each. We each contribute $100 for a total of $ in the class. Does Apple become a success??? Now Apple stock is selling at $ each. Each person made/lost $.

22 Why might it be better that we all only invested $100 rather than one person investing the same amount of the entire class on their own?

23 JOINT-STOCK COMPANY As a class, choose a company you want to invest in. How many is each individual person buying of this stock? How many stocks will your class buy total? Your individual cost is $ /Person Your class cost is $ total

24 JOINT STOCK COMPANY OH NO! Your company made a product that was unsuccessful. The stock price dropped by 50%. Now each stock is worth $ Each student lost $ As a class you lost $ TOTAL Why might it be better to invest in something as a group rather than as an individual?

25 The Result of Risk Taking Entrepreneurs is The Rise of the Middle Class! Merchants and Artisans that were once poor were able to make money by investing and working in commerce.

26 CAPITALISM Capitalism: A system in which people own property, make goods, and buy and sell freely.

27 Free Enterprise The freedom of private businesses to compete for profits without government involvement. For Example: McDonalds Vs. Burger King

28 Something to Think About

29 Adapted Notes on European Expansion After exploration and colonization, Europeans started with Africans and Americans. This started the COLUMBIAN EXCHANGE. The Exchange: the movement of goods, people, ideas, and diseases. Mercantilism is an theory that explains how nations could become. The theory says: A nation can become powerful if they have a lot of, or gold and silver. Countries increase their bullion (gold and silver) in the following ways: 1. more than you Import or buy more than you sell. 2. Build. They have natural resources. 3. Place high or taxes on foreign goods. 4. Make colonies purchase goods from their ruling country to increase exports. Commercial Revolution A commercial revolution means that there is a change in. Commerce is the buying and selling of in large amounts over long distances.

30 Supply and Demand: Adapted Notes on European Expansion (pg 2) In order to make money, merchants had to make decisions based on the law of &. Supply: The amount of available. Demand: What people. Supply and Demand RULE #1: If something is, or difficult to get, people may pay a of for it. Supply and Demand RULE #2: If a business has a quantity of something and people do not want it, the price will be. Merchants would find goods that were in one place and in high somewhere else in the world.

31 Notes (pg 3) Commerce, the buying and selling of goods, led to the rise of a business person called an. Entrepreneurs risk in hopes of earning a. When business ideas were too risky or expensive for one person, people formed -. This allowed people to stock in a company, which means they own part of the company and will share in its or. The Result of Risk Taking Entrepreneurs is The Rise of the Class! Capitalism: A system in which people own, make goods, and buy and sell. Free Enterprise The freedom of private businesses to for profits without involvement.