1. Chapter 3 Section 5 NotesChapter 3 Section 5 Notes
Changes in EuropeChanges in Europe

2. Global Exchange or the ColumbianGlobal Exchange or the Columbian
ExchangeExchange
 Started when Columbus brought European goodsStarted when Columbus brought European goods
with him to America and goods back to Europewith him to America and goods back to Europe
 Included people, plants, animals, technology andIncluded people, plants, animals, technology and
diseasedisease
 From America- tomatoes, pumpkin, peppers, corn,From America- tomatoes, pumpkin, peppers, corn,
potatopotato
 From Europe- wheat, grapes, bananas, sugar,From Europe- wheat, grapes, bananas, sugar,
cattle, pigs, goats, chickens, and horsescattle, pigs, goats, chickens, and horses

4. A Commercial RevolutionA Commercial Revolution
 The Price RevolutionThe Price Revolution
 Inflation- a rise in pricesInflation- a rise in prices
linked to a sharplinked to a sharp
increase in the amountincrease in the amount
of money available.of money available.
 Caused by an increaseCaused by an increase
in demand for goods andin demand for goods and
increased money inincreased money in
circulationcirculation

5. A Commercial RevolutionA Commercial Revolution
 Growth of CapitalismGrowth of Capitalism
 capitalism- type of economic systemcapitalism- type of economic system
in which the means of production arein which the means of production are
privately owned for profitprivately owned for profit

6. A Commercial RevolutionA Commercial Revolution
 New Business methodsNew Business methods
 bookkeeping to keep track of profits andbookkeeping to keep track of profits and
losseslosses
 banks- wealthy merchants could lendbanks- wealthy merchants could lend
money with interestmoney with interest
 joint stock company- private tradingjoint stock company- private trading
company in which shares are sold tocompany in which shares are sold to
investors to finance business venturesinvestors to finance business ventures

7. MercantilismMercantilism
 Mercantilism-Mercantilism-
nations export morenations export more
goods than itgoods than it
importsimports
 Role of Colonies-Role of Colonies-
colonies existed forcolonies existed for
the benefit of thethe benefit of the
parent country, thus,parent country, thus,
trade was strictlytrade was strictly
controlledcontrolled

8. Lives of Ordinary PeopleLives of Ordinary People
 merchants did well, but this hurt nobles whosemerchants did well, but this hurt nobles whose
wealth was tied up in the landwealth was tied up in the land
 wages of hired workers did not keep up withwages of hired workers did not keep up with
inflation, creating poverty and discontentinflation, creating poverty and discontent
 Middle class families tended to do wellMiddle class families tended to do well