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discuss how the commercial revolution contributed to mercantile theory
there was a shift in economy from barter to mercantile system
barter- goods for goods, circulate readily, little or no hoarding, equal distribution
mercantile- goods for $, don't criculate, lots of hoarding, unequal
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define mercantilism
nations power is determined by how much gold it has
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how does a nation get gold?
- 1. conquest
- 2. favorable balance of trade
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describe the favorable balance of trade
more exports than imports
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what role did colonies play in mercantilism?
provide new market for exports from mother countries, provide raw materials + labor
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define columbian exchange
global transfer of foods, plants, animals, and disease between {Africa Asia Europe} and the Americas
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what were 6 goods going each way?
to europe: potato, cacao bean, corn, tomato, peanut, pineapple
to americas: citrus fruits, banana, onion, olive, grape, coffee
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define capital
money used as a tool to make more money
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when did the colombian exchange begin? why?
1500s, ships + exploration
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when did the colombian exchange take off? why?
1700s, industrial revolution
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who has advantage in capitalism? why?
wealthy, takes money to make money
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ID joint stock company
similar to modern corp. investors buy shares of stock in a company. numbers of people combine wealth + capital for a common purpose.
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