Commerce and Colonies

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Commerce and Colonies

• Chapter 1.3

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A. Rise of Capitalism

1. Before the 1300s, wealth was based on land, not
   money
2. Slowly capitalism became the dominant economic
   system in Europe
3. Capitalist investors financed voyages of
   exploration in an effort to make profits

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B. Mercantilism

1. Asserted that the measure of a nations wealth
   was its supply of gold and silver
2. Nations sought a positive balance of trade
3. Colonies provided cheap raw materials and help
   create new markets

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C. Colonizing North America

1. Spain and Portugals success in exploration
   influence other nations to follow their lead
2. Jacques Cartier (France), John Cabot (England)
   and Henry Hudson (Netherlands) all search for a
   Northwest Passage to China
3. These explorers enable their nations to claim
   land in North America