Rise of Modern Capitalism

Chapter 1Section 2Pages 90-97

Vocabulary Words Capitalism: money invested in business to

make more money Joint-Stock Company: organizations of

stockholders formed to share profits and risks of ventures

Mercantilism: theory that a nation becomes powerful by building up a supply of gold and silver

Columbian Exchange: global exchange of people, goods, technology, ideas and diseases

Essential Question #1 What were the voyages of discovery,

locations of routes, and influences of cartography in the Americas?

Essential Question #2 What were the origins of modern

capitalism?

How did Capitalism Develop? Search for wealth led to capitalism

an economic system in which money is invested to make profits

Commercial Revolution Roots of modern financial and banking

life

Growth of Banking 1600’s: system of banking in

financial trading ventures Gov’t funded trading Wealthy families set up banks

Changes in Banking Persecuted Jews

Financiers Importers shipbuilders

Gov’t supported banks

Joint-Stock Companies Wanted to invest in exploration Merchants combined resources Raised funds for voyages Dutch East Trading Company

From Netherlands Monopoly (sole right) to trade Gov’t received taxes

A New Business Class Entrepreneurs combined money,

ideas, raw materials and labor to make profits

What is Mercantilism? Led to colonies 1600’s economic policy Built up supply of bullion (gold, silver) Spain sent conquistadors to Americas

Seized gold/silver of Incas and Aztecs Exported more than imported

Merchants made money Gov’t made taxes

Quest for Colonies Columbian Exchange in the Americas

Brought livestock Changed lives

Rivalry among nations Colonies controlled by home country

Trade in Goods Europeans planted grains from

Europe, Asia New Animals

Pigs, chicken, sheep, cattle, horses New Crops

Acquired corn, potatoes, tomatoes, beans, chocolate, squash, chili peppers, peanuts, tobacco, sugar cane, tea, bananas, coffee

Slave Trade Enslaved Africans planted and grew

sugar cane