The Columbian Trade & Global Exchange

I) The Columbian Exchange

-The Columbian Exchange is the trade of food, plants and animals during colonizing America
-Many food types have been found in America, which the Euro-Asian countries never seen
-Corn and Potatoes were the best discoveries, because they are easy to grow and nutritious
-Many livestock and other food from Africa were also sent to America
-Wheat, rice, barley and oats were introduced on American Soil
-The diseases brought across the sea also made a huge impact in America, killing Natives
-Smallpox, influenza, malaria, typhus and diphtheria were brought to America

II) Global Trade

A) The Rise of Capitalism

-This is the system of private ownership investments to produce profits
-Many wealthy traders started investing their money in this way
-This lead to an increase in overall businesses in Europe, boosting economy
-This brought inflation to many European countries, as the prices of goods rose
-This is due to the fact they were in low supply, so prices were raised

B) Joint Stock Companies

-Similar to a modern corporation the joint stock companies had stocks
-These were used so people could combine their wealth to accomplish a business
-The primary investments were on colonization, which was expensive
-Thanks to the system the investors had to pay little, and lost that much in case of failure

III) Growth of Mercantilism

-This was a system where a governments power was determined by the wealth of their citizens
-Therefore, most governments tried to gain as much wealth as possible for their citizens

A) Balance of Trade
-To become wealthy a country must either gain a lot of gold/silver or sell more than bought
-Another factor was that the country was self-sufficient, able to survive without other nations
-The colonies also offered products, such as furs not found in Europe
-This could be sold to produce a profit and increase the country’s wealth

B) Economic Revolution Changes European Society

-Many of the countries were more focused on gaining wealth
-Although many merchants became really wealthy, they made up a small percentage
-Most of the people in Europe were still poor
-They also lived on the country-sides, with the rich in cities and towns