Chapter 20Section 4

Objective

Describe the Columbian Exchange, global trade,

and mercantilism.

The Columbian Exchange

• the transfer of plants, animals, and diseases between the Old World and the Americas following Columbus's arrival in the Caribbean in 1492.

The Columbian Exchange• Led to a population increase because of the

increase of food products• Led to the migration of millions of people

• Benefited who?Europeans and the Colonies

• Catastrophic for who?Natives

• Colonists/explorers jump-started a process of evolution that hadn’t yet reached the New World– Prematurely merged New

World with Old World– Before, New and Old World

evolved/progressed in isolation

Global Trade• Found new wealth

led to more oversea trade– Rise in business, 16th & 17th centuries

New Economic Systems• Capitalism an economic system based on private

ownership and the investment of resources for profit– Governments no longer only ones with great wealth– Merchants gained $$ and invested it

• Mercantilism a country’s power depends mainly on its wealth– Goal of every nation was to gain as much wealth as possible– Colonies were seen as places to take resources from

• Colonies were a supplier and provided a market

Economic Revolution Changes European Society

• Growth of towns• Very wealthy merchants• Increased nation’s wealth led to creation of

national identity

Disadvantages:• Much of population still lived in rural areas and

remained poor

• Governments made a lot of money off the colonies, but it also cost a lot to maintain so many governments

• Government backed monopolies created a greater divide between the rich and the poor

• A strong European middle class was created, but the laborers of the factories and mines lived wretched lives