The Commercial Revolution - PowerPoint Presentation

The Commercial Revolution
The Commercial Revolution

The Commercial Revolution - Description


Europes Economy Nation basic economic unit Nations competed for markets and trade goods New business methods needed Investing money Speeding flow of wealth Reducing business risk New Business Methods ID: 704064 Download Presentation

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revolution commercial trade goods commercial revolution goods trade results exchange business columbian mercantilism bullion triangular stock development wealth materials

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Slide1

The Commercial RevolutionSlide2

Europe’s Economy

Nation

= basic economic unit

Nations competed for markets and trade goods

New business methods needed:

Investing money

Speeding flow of wealth

Reducing business riskSlide3

New Business Methods

Raising

capital

– Overseas traders needed $ to finance trips

Family Bankers

– Medicis of Florence, Fuggers of Augsburg

Gov’t Chartered Banks

– issued bank notes and checks, exchanged foreign currencySlide4

New Business Methods

Joint-stock companies

– individual merchants combined resources, sold stock/shares in an overseas trading venture

Share profit/risks among many

Some joint-stock co.’s had gov’t support/monopoly on trade (

EX: Dutch East India Company

)Slide5

Results of Commercial Revolution

Inflation

– gold and silver flowed into Europe, prices rose very quickly (= inflation). Hardest hit was Spain (never recovered) and China/Japan (exchange of New World silver for goods)

More capital available

– new business createdSlide6

Results of Commercial Revolution

Goal of business

= solely to make profit, expand business, develop new ventures (

capitalism

)

Entrepreneur

= individual who combined $, ideas, raw materials, & labor to make goods and profitsSlide7

Results of Commercial Revolution

New centers of trade

– Atlantic Ocean countries (Portugal, Spain, England, the Netherlands) replace Med. Sea cities (Genoa, Venice) as leaders in world tradeSlide8

Results of Commercial Revolution

Development of

mercantilism

– new economic theory

Nation’s power depended on its wealth (amount of

bullion

, or gold & silver it possessed)Slide9

Results of Commercial Revolution

Development of

mercantilism

(cont.)

Colonies existed solely for the benefit of the mother country (provide raw materials, markets for finished goods)Slide10

Results of Commercial Revolution

Development of

mercantilism

(cont.)

Nation to possess a favorable

balance of trade

– export more goods than it imports, bullion received for exports more than paid out for imports = surplus of bullionSlide11

Results of Commercial Revolution

Change in European society

Merchants pass nobility in both wealth and power

Middle class expanded – more leisure time, coffeehouses popular as gathering places for businessmentSlide12

Results of Commercial Revolution

Change in European society

(cont.)

Peasants did not see any real benefits from the Commercial Revolution – life was still roughSlide13

The Columbian Exchange

Global Exchange of Goods, People, Ideas, and DiseasesSlide14

The Columbian Exchange

Europe’s growing population = demand for more goods and services

Trade expanded worldwide exchange of people, goods, technologies, ideas, diseases

Became known as the

Columbian ExchangeSlide15

The Columbian Exchange

Europe

Americas

Wheat Corn

Grapes Potatoes

Livestock Chocolate

Christianity Tomatoes

Disease Beans

Slaves (from Africa) Tobacco

Asia

Silk/Spices

Sugarcane

Coffee

TeaSlide16

The Columbian Exchange

Effects

Cultural Diffusion- Local cultures integrated European beliefs (and vice versa)

Large movement of population (slavery, Eur.migration to New World)

Decline of Native American pop. due to disease (EX: smallpox)Slide17

The Great Circuit

A “Triangular Trade Network”Slide18

GREAT CIRCUIT

EUROPE

AFRICA

AMERICAS

Middle Passage

Mfr. goods

Raw Materials

Knives, Swords, Guns, Cloth, Rum

Sugar, Molasses, Cotton, Tobacco

Enslaved Peoples

1

2

3Slide19

Triangular Trade NetworksSlide20

Triangular Trade Networks

Shom More....