Global Economic Systems Nations prosperity based on bullion

Global Economic Systems

Nation’s prosperity based on bullion (gold and silver supply) Maintain Balance of Trade Difference between exports and imports Exports > Imports Government involvement Subsidize new businesses Mercantilism (give them money) Roads, bridges, canals Tariffs on exports

New plants, animals, and diseases introduced to Europe and Americas Part of massive trade network Effects of Exchange Population growth across the world European diseases devastate Native American populations Columbian Exchange

Plants and Animals Horses Potatoes Tobacco Cattle Wheat Tomatoes Citrus Fruit Old World New World

Effects of Expansion Destruction of local cultures Impact on society and trade patterns (what they traded) Increase in the slave trade

Beginning of world economy Huge increase in trade Creation of trading posts and empires Affect: Caused dramatic shifts in local economies and cultures Colonial Expansion

Increased demand for African slaves Mainly from African coasts Supporters and critics Primarily due to sugarcane Not enough natives for labor Slaves became part of Triangular Trade Atlantic Slave Trade

Europe Raw Goods (Tobacco, Molasses, Sugar, Cotton) Manufactured Goods: Guns and Cloth Triangular Trade Americas Enslaved Africans Africa

Effects of the Slave Trade Depopulation in African states Increased warfare Continued use of African labor