3.
Mercantilism
◦ An economic policy under
which nations sought to
increase their wealth and
power by obtaining large
amounts of gold and
silver and by selling more
goods than they bought.
◦ The goal was selfsufficiency
Colonization!
Capitalism
◦ An economic system
based on private (not
govt.) ownership and the
investment of wealth for
profit.
◦ Wealthy merchants
reinvested their profits
into new ventures
◦ A key role in the
Industrial Revolution
The Commercial Revolution16th and 17th Century Europe
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8.
Pool wealth for a common purpose
1500s and 1600s common purpose was
colonization
Profits and risks were high
If there was failure the risk was spread out
Dutch (Indonesia) and British (India)-received
charters from the govt. granting trading
monopolies and the power to make war and
govern conquered people
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10.
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20.
Increase in economic activity leads to
increase in $ supply.
Inflation-steady rise in the price of goods
Occurs when people have more money to
spend and demand more goods and services
Goods become scarce and more valuable and
prices rise