Commercial Revolution
- 1. Warm-Up: Where in the world do your food, clothes, and luxury goods come from?
- 2. Did the Commercial Revolution have an impact on slavery? YES The Commercial Revolution had an enormous impact on slavery since the colonies needed MORE labor to support the mother country by providing the raw materials needed.
- 3. The Commercial Revolution marked an important step in Europe from local economies to a global economy.
- 4. Mercantilism • Mercantilism was the belief that a nation’s power depended on the ownership of gold and silver. • In order to acquire gold and silver, European countries established overseas colonies. • Colonies provided gold, silver and raw materials.
- 5. Mercantilists believed that a country’s wealth was based on the amount of gold and silver it acquired.
- 6. Mother Countries and Colonies • Mother countries were conquerors. • The conquered land was a colony. • In addition to mining for gold and silver, Mother countries imported natural resources or raw materials and exported finished goods.
- 7. Mother countries imported cheap raw materials like cotton and exported more expensive finished goods like shirts.
- 8. Capitalism • Merchants and bankers laid the foundations for capitalism. • In a capitalist system, business owners risk their capital (money) to start new businesses hoping to make profits. • Individuals formed joint-stock companies.
- 9. A stock certificate represents partial ownership in a business.
- 10. Joint Stock Companies • A Joint stock company is a privately owned company that sells stock or partial ownership in the company to investors. • Investors risk their capital or money when they purchase stock. • If the company is successful, the investor receives his share of the profits.
- 12. European kings Increased their wealth and power through conquest and colonization
- 13. While European Kings and capitalists increased their wealth, Native American Indians and Africans were terribly exploited.
- 14. Increase for raw materials including gold & silver as well as natural resources. Increase in Manufactured Goods and new markets Demand for cheap labor to extract raw materials to replace labor that died from disease. Cause and Effect causes causes causes Atlantic Trade to the New World Manufactured Goods from Europe Raw Materials from Africa & New World What have we learned?
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