BELLRINGER: 10/9 Get out your Age of Exploration/Discovery Vocab and study for your vocab quiz. AGENDA: 10/9 **SHORT CLASS TODAY** 1. Vocabulary Quiz 2. Notes: Columbian Exchange 3. Study Guide: Age of Exploration HOMEWORK: Complete study guide; review for mini-test on Age of Exploration on 10/16 Next class for Block 1 Ms. Allen WHII 2015-16 KEY QUESTION: What is the Columbian Exchange and how did it change the world? The Columbian Exchange • Voyages launched large-scale contact between Europe and Americas. • Interaction with Native Americans led to sweeping cultural changes. • Contact between the two groups led to the widespread exchange of plants, animals, and disease—the Columbian Exchange. The Exchange of Goods Sharing Discoveries • Plants, animals developed in very different ways in hemispheres • Arrival of Europeans in Americas changed all this • Europeans—no potatoes, corn, sweet potatoes, turkeys • Previously unknown foods taken back to Europe • People in Americas—no coffee, oranges, rice, wheat, sheep, cattle • Familiar foods brought to Americas by colonists The introduction of the horse provided people in the Americas with a new source of labor and transportation. Impact on Native Americans Europeans were learning of the profitability of the plantation system – relying on what? Economic benefit of using local forced labor Disease – Europeans, unknowingly brought measles, mumps, chickenpox, smallpox, typhus and others The local people had no built-up natural immunity to these diseases yet Impact on Africans With decline of native work force, labor was needed from elsewhere. Slave trade exploded, especially in W. Africa Over the next 300 years (1500-1800) approx. 10 million people were taken Impact on Europeans Europeans began to cross the Atlantic creating one of the largest voluntary migrations in world history. Overseas expansion inflamed national rivalries in Europe causing conflict. Treaty of Tordesillas, 1494 (Spain Vs. Portugal) Growth of trade markets completely changed the world FOREVER! The Exchange was positive and negative in its effects: Positive Effects: Different Foods • Over time crops native to Americas became staples in diets of Europeans • Foods provided substantial nutrition, helped people live longer • Scholars estimate one-third of all food crops grown in world are of American origin Economics and Gastronomics • Activities like Texas cattle ranching, Brazilian coffee growing not possible without Columbian Exchange; cows, coffee native to Old World • Traditional cuisines changed because of Columbian Exchange Italian Food Without Tomatoes? • Until contact with Americas, Europeans had never tried tomatoes • Most Europeans thought tomatoes poisonous • By late 1600s, tomatoes had begun to be included in Italian cookbooks Negative Effects: In the exchange that started along the coast of Newfoundland and was made widespread by Columbus, disease was the most negative for the Native American population Fatality rate over a period of two to three generations was 95% for many tribal groups In some cases, as in the Mohegans case, the fatality rate could be 100 percent The Introduction of New Diseases • Native Americans had no natural resistance to European diseases • Smallpox, measles, influenza, malaria killed millions • Population of central Mexico may have decreased by more than 30 percent in the 10 years following first contact with Europeans Devastating Impact • Native American population continued to decline for centuries • Inca Empire decreased from 13 million in 1492 to 2 million in 1600 • North American population fell from 2 million in 1492 to 500,000 in 1900—but disease not only factor in decrease of population • Intermittent warfare, other violence also contributed Old World Diseases European disease was particularly virulent Smallpox, measles, diphtheria, whooping cough, chicken pox, bubonic plague, scarlet fever and influenza were the most common diseases Nearly all of the European diseases were communicable by air and touch. The pathway of these diseases was invisible to both Indians and Europeans Europeans believed that it was God’s will that Indians died No germ theory at the time of contact. Illness in Europe was considered to be the consequence of sin Indians, who were largely “heathen” or non-Christian were regarded as sinners thus subject to illness as a punishment Mercantilism New Economic Policy Intense Competition • Founding of colonies, new goods in Europe led to significant changes • Wealth measured by amount of gold, silver possessed by nation • 1500s, Europeans developed new economic policy, mercantilism • Mercantilists believed there was fixed amount of wealth in world • Nation’s strength depended on its wealth • For one nation to become wealthier, more powerful—had to take wealth, power away from another nation • Wealthy nation had power for military and expanded influence • Mercantilism led to intense competition between nations Balance of Trade • Mercantilists built wealth two ways— •1) extract gold, silver from mines at home, in colonies; •2) sell more goods than it bought from foreign countries, creating favorable balance of trade • With favorable balance of trade, country received more gold, silver from other nations than it paid to them • Increased its power; weakened foreign competitors Imports • To achieve favorable balance of trade, could reduce amount of imports by placing tariffs on goods Exports • Encourage exports that could sell for higher prices than raw materials • Importer paid tariff, added cost to price of good • Countries encouraged manufacturing and export of manufactured goods • Imported goods more expensive, discouraged people from buying • Governments provided subsidies to help start new industries Colonies Building colonial empires essential to mercantilist system Colonies • European powers wanted to establish colonies Strict Laws • Monarchs restricted economic activities in colonies – To control sources of raw materials • Colonists could not sell raw materials to other countries – To provide new markets for manufactured goods • Could not buy manufactured goods from other nations • To mercantilist, colonies existed only to benefit home country • Strict laws forbade colonies from manufacturing goods • Forced to buy only from home country Commercial Revolution What: The transition (change) from Mercantilism & then to Capitalism IS the COMMERCIAL REVOLUTION When: 16th -17th centuries Who/Where: Europeans & European countries & colonies Why?: changes in commerce (trade) & money making methods Changes in the power structure btwn countries Why Care?:Influenced today’s financial dealings (the way we do business) Commercial Revolution The shift from mercantilism to capitalism is called the Commercial Revolution. CAUSE: Happens because of changes in commerce (trade) and money-making practices EFFECTS: set the stage for the development of CAPITALISM Basis of today’s financial practices The Rise of Capitalism Increasing trade between Europe and colonies created new business and trade practices during the 1500s and 1600s. These practices would have a great impact on the economies of European nations. Capitalism Emerges Overseas TRADE Increased BUSINESS ACTIVITY • In capitalism, most economic activity carried on by private individuals, organizations in order to seek profit • During this time, capitalism expanded • Individuals amassed great trade fortunes • Merchants supplied colonists with European goods • Returned products, raw materials • Overseas trade made many merchants rich • Wealth enabled them to invest in more business ventures • Business activity in Europe increased greatly Rising Prices (INFLATION) • Investors took risks of investing in overseas trade because of inflation • Inflation: steady increase in prices • Demand for goods increased due to growing population, scarcity of goods; rising demand drove prices higher Money Supply • Increase of money supply another factor in higher prices (INFLATION) • Shiploads of gold, silver flowed into Europe from Americas to be made into new coins • Over time, increase of money in circulation pushed prices for goods still higher A New Business Organization New Ventures • Overseas business ventures often too expensive for individual investors • Investors began pooling money in joint-stock companies Shares Joint-Stock Companies • Investors bought shares of stock in company • If company made profit, each shareholder received portion Financing Colonies • Profit, loss based on number of shares owned • British East India Company, one of first joint-stock companies • If company failed, investors lost only amount invested • 1600, imported spices from Asia • Others formed to bear cost of establishing colonies So… What is CAPITALISM? Economic System based on: private ownership & investment of wealth for profit Free Trade Cause: overseas colonization & trade = lots of merchants getting RICH! And… they continued to invest in trade to get RICHER (increase profits) AND then… they re-invested more to get even RICHER!