Welcome Back!

1
(No Transcript)
2
Welcome Back!

• Find your seat

3
Pre-Columbian America Review

• As you walk around the room, observe each poster
  about the Maya, Inca, and Aztec. Use the
  information provided by the posters to answer the
  set of questions for each empire
• Once you have this completed, get your answers
  checked by me and then you can get started on
  your concept cards!

4
Standard

• Standard 7.63 Explain the origins of modern
  capitalism, the influence of mercantilism, and
  the cottage industry the elements and importance
  of a market economy in 17th century Europe the
  changing international trading and marketing
  patterns including their locations on a world
  map and the influence of explorers and
  mapmakers.
• In short- What systems of economy developed in
  Europe during 17th century? How did Europes
  economy in the 17th century influence our system
  of economy today?

http//www.jftc.go.jp/en/ippan/part1/market.html
5
Capitalism
Privately Owned- owned by either one individual
or by a small group of individuals Opposite of
Communism- government controls the production of
goods services
6
Market Economy
Market Economy A capitalistic type of economic
system in which there is free competition and
prices are determined by the interaction of
supply and demand.There is little government
intervention. Opposite of Command Economy-
Government has total control
7
What if there was no competition?
8
Cottage Industry
Guilds
Cottage Industry business or manufacturing
activity carried on in a person's home.
Guilds a medieval association of craftsmen or
merchants, often having considerable power
9
What is Mercantilism?

• Explain the theory of Mercantilism
• What is the best way for a country to get gold
  silver?

The key idea of mercantilism is that a countrys
power depends on it wealth.(gold and silver)
A country must export (sell) to other countries,
more goods than it imports (buys) from other
countries
10
What is Mercantilism? Colonies

• According to Mercantilism, countries should
  establish_______
• What is a colony?
• Colonists provide _________ materials that are
  not found or made in the home country. These
  materials are then __________ to the home country
  to be used for manufacturing. This keeps the home
  country from having to do what?

colonies
a settlement of people living in a territory
controlled by their home country
raw
shipped
The home country does not have to buy goods from
other countries
11
What is Mercantilism? European trading
posts/colonies in Asia

• Europeans established trading posts and
  colonies in __________ and ________________.

Asia
North America
12
Document AnalysisManorialism
Based on the diagram, what is one economic
characteristic of the medieval manor?
13
Document Analysis Mercantilism
According to the political cartoon, what is one
characteristic of mercantilism from the
perspective of the mother country?
14
Manorialism vs Mercantilism
Describe the major differences between
manorialism mercantilism
15
Creating Joint-Stock Companies

• As trade flourished and grew, new practices in
  business were developed, and a fundamental change
  in European society took place.  Historians call
  this time period ______________
• What is an entrepreneur?
• As overseas trade increased, many projects were
  too large for one entrepreneur to pay for. As a
  result, groups of entrepreneurs began to form
  ________________________.

Commercial Revolution
One who organizes, pays for, and takes on the
risk of setting up a business
joint-stock companies
16
Creating Joint-Stock Companies

• A joint-stock company is a business in which
  ________________________________.
• What does it mean to invest?_____________________
  ________________________.
• Why do you think an individual would choose to
  invest in an overseas trade project?

many people can invest
to put money (stock) into a project in exchange
for a profit
17
Mercantilism Cottage Industry influences on
Capitalism
Cottage Industry

18
Why were European countries motivated to explore?
Look at the following pictures and see if you
can determine the major reasons for exploration
in the 15th through 17th centuries!
19
GOD
20
(No Transcript)
21
Homework

• Finish the World Trade Changes Reasons for
  Exploration worksheet