3.
Mercantilism
◦ An economic policy under
which nations sought to
increase their wealth and
power by obtaining large
amounts of gold and
silver and by selling more
goods than they bought.
◦ The goal was selfsufficiency
Colonization!
Capitalism
◦ An economic system
based on private (not
govt.) ownership and the
investment of wealth for
profit.
◦ Wealthy merchants
reinvested their profits
into new ventures
◦ A key role in the
Industrial Revolution
The Commercial Revolution16th and 17th Century Europe
4.
5.
6.
7.
8.
Pool wealth for a common purpose
1500s and 1600s common purpose was
colonization
Profits and risks were high
If there was failure the risk was spread out
Dutch (Indonesia) and British (India)-received
charters from the govt. granting trading
monopolies and the power to make war and
govern conquered people
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Increase in economic activity leads to
increase in $ supply.
Inflation-steady rise in the price of goods
Occurs when people have more money to
spend and demand more goods and services
Goods become scarce and more valuable and
prices rise
