1. The Columbian ExchangeThe Columbian Exchange

2. Columbian ExchangeColumbian Exchange
• Columbus traveled back and forth from
Europe to the Americas
• On these expeditions he brought goods to
and from the countries
• Columbus began a vast global exchange
that would effect the world
• Because this global exchange began with
Columbus we call it the Columbian
Exchange

3. Goods were exchangedGoods were exchanged
• People
• Plants
• Animals
• Technology
• Diseases
What is the Old World
and what is the New
World?

4. From The Old WorldFrom The Old World
Europe
Wheat
Onions
Apples
Carrots
Horses
Cattle
Africa
Radishes
Watermelon
Coffee
Asia
Rice
Sugarcane
Mangoes
** How would horses impact the New World?

5. From The New WorldFrom The New World
North America
Sunflowers
Corn (Mexico)
Avocadoes
Central America
Peppers
Beans
Cocoa
South America
Potatoes
Tomatoes
Peanuts
** Why would potatoes be important in Europe?

6. Impact on PopulationImpact on Population
• By the 1700s, corn, potatoes, beans and
tomatoes were contributing to population
growth
• People began migrating to the Americas
as well
– Why would people want to move to the
Americas?

7. Continued..Continued..
• European diseases (like small pox) killed Native
Americans
• Shortage of labor to grow cash crops led to the use of
African slaves
– Spain needed help for their American empires
• Slavery was based on race (Superior vs Inferior)
• European plantation system in the Caribbean and the
Americas destroyed indigenous economics and
damaged the environment.

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The Commercial RevolutionThe Commercial Revolution
In this lesson, students will be able to define theIn this lesson, students will be able to define the
following terms:following terms:
The Commercial RevolutionThe Commercial Revolution
MercantilismMercantilism
ColoniesColonies
Mother CountryMother Country
CapitalismCapitalism
Joint Stock CompanyJoint Stock Company

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The Commercial Revolution marked
an important step in Europe from
local economies to a global economy.

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MercantilismMercantilism
• 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 and silver.

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Mercantilists believed that a country’s
wealth was based on the amount of
gold and silver it acquired.

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Mother Countries and ColoniesMother 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 from their
colonies and exported finished goods.

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Mother countries imported cheap
raw materials like cotton and
exported more expensive finished
goods like shirts.

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CapitalismCapitalism
• 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.

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A stock certificate represents partial
ownership in a business.

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Joint Stock CompaniesJoint 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.

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Joint stock companies were sometimes
given charters to establish settlements
in the “New World”.

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“Triangular” trade made some
continents wealthy while it impoverished
other continents.

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European
kings
increased
their
wealth and
power
through
conquest
and
colonization.

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While European Kings and capitalists
increased their wealth, Native American
Indians and Africans were terribly exploited.

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Questions for Reflection:Questions for Reflection:
• Define mercantilism.
• How did European nations increase their
wealth and power?
• Define capitalism.
• Why did individuals invest in Joint stock
companies?
• What was “Triangular” trade?
• What was the relationship between a mother
country and a colony?

22. Triangular Trade and the
Atlantic Slave Trade

23. Atlantic Slave Trade
•The Atlantic slave trade was started in the 1500s
to fill the need for labor in Spain’s American
empire.
•Each year, traders
shipped tens of
thousands of
enslaved Africans
across the Atlantic to
work on tobacco and
sugar plantations in
the Americas.

24. Atlantic Slave Trade
•Europeans relied on African rulers and traders to
seize captives in the interior and bring them to
coastal trade posts and fortresses.
•The slave trade
intensified as the demand
for slaves increased in the
Americas and the demand
for luxury goods increased
in Africa.

25. Atlantic Slave Trade
• The Atlantic slave trade formed one part of a three-legged
trade network know as the triangular trade.

26. Destinations of Enslaved Africans
What country imported the most slaves?
Which imported the fewest?

27. The Middle Passage
•Hundreds of men, women and children crammed on
one vessel
•“Floating Coffins”
•Dying from disease or brutal mistreatment
•Few of the
Africans who
resisted lived
to see the end
of their
journey

28. Impact of the Slave Trade
•By the 1800s, an estimated 11 million enslaved Africans
had reached the Americas. Another 2 million probably
died during the Middle Passage.
•The slave trade caused the decline of some African
states. The loss of countless numbers of young
women and men resulted in some small states
disappearing forever.
•New African states arose whose way of life depended
on the slave trade. The rulers of these new states
waged war against other Africans in order to gain
control of the slave trade in their region.

30. Commercial RevolutionCommercial Revolution
• Opening trade with Asia, Africa and America
changed (revolutionized) Europe’s economy:
1. Inflation caused by
– growth in population = increase in demand for goods and
services
– because goods were scarce, sellers could raise their prices
– by mid-1500s silver and gold were everywhere and rulers
were using it to make coins – thus an increased amount of
money in circulation
– combine this with scarcity of goods and prices will rise

31. Growth of CapitalismGrowth of Capitalism
2. Expanded trade and push for overseas
empires spurred the growth of capitalism
– entrepreneurs and capitalists wanted more money
– they made up a new business class devoted to
making profits
– this changed the local European economy into an
international trading system

32. MercantilismMercantilism
3. Basic Ideas behind mercantilism:
– Nation’s wealth based on its gold and silver
treasure
– Must export more goods than imported
– Colonies existed for benefit of parent country
• Provide raw materials and resources
• Provide a market for selling manufactured goods
• Colonies could ONLY buy from parent country

33. Summary of Commercial
Revolution
• How did the Commercial Revolution
change Europe’s economy?
– Prices rose (inflation)
– A new business class (entrepreneurs) was
created ….capitalism
– The goal of European economies changes
from agrarian base to CASH based
(mercantilism)

34. Effects on Ordinary PeopleEffects on Ordinary People
• Nobility/Upper Class
– Wealth came from land, not cash
– Could not raise money to pay higher costs
for luxury goods
• Middle Class (Merchants)
– Investments led to increased wealth
– Grew powerful in cities
– Enjoyed comfortable living

35. Effects on Ordinary PeopleEffects on Ordinary People
• Peasants/Laborers/Lower Class
– Wages did not keep up with inflation
– Peasants reluctant to grow new crops
– City laborers forced to live in poverty

36. Food for ThoughtFood for Thought
• Before the Columbian Exchange, there were
– no oranges in Florida
– no bananas in Ecuador
– no paprika in Hungary
– no tomatoes in Italy
– no pineapples in Hawaii
– no cattle in Texas
– no chile peppers in Thailand and India
– no cigarettes in France
– no chocolate in Switzerland