Chapter 1 Section 2 Flashcards
What are Join-stock companies?
A company in which investors buy stock in the company in return for a share of its future profits.
This enabled large and small investors to share the profits and risks of a trading voyage. Provided a stable way of doing business.
A few joint-stock companies became rich and powerful through government support.
What is capitalism?
An economic system in which money is invested in business to make profits.
The search for wealth led to the rise of modern capitalism.
What is an entrepreneur?
Someone who starts their own business.
They combined their money, ideas, raw materials, and labor to make goods and profits.
The Medici and Fuggers Family
Medici Family from Florence, Italy and Fuggers Family from Augsburg, Germany provided financial assistance to merchants. They were bankers who financed the merchants ventures. They were very wealthy, so wealthy that they accepted deposits, made loans, and transferred funds over long distances.
Assist
Giving help to others
Finance
Providing funds or capital
Fund
A sum of money saved, collected, or provided for a particular purpose.
What is Mercantilism?
The theory that a state’s or nation’s power depended on its wealth.
This theory held that a nation became powerful by building up its supply of bullion.
How did mercantilism work?
By creating wealth through trade.
To create a favorable balance they wanted to export more goods than they imported.
Greater wealth meant greater national power and more influence in the world.
Colony
A settlement of people living in a new territory controlled by their new country.
According to mercantilists, colonies are supposed to produce goods that their home country does not have. That way, the home country will tonnage to import goods from other countries.
What changed with Venice and Genoa?
Venice and. Genoa were originally the leading trade centers in Europe until trade routes and fortunes moved westward toward the Atlantic Ocean and the Americas
Explain the Colombian Exchange
As Europe began trading with the world, a global exchange of people, technology, ideas, and even diseases began.
What is a plantation?
A large estate to raise crops, Spanish developed the plantation system.
Who was Bartolome de las Casas
A Spanish priest who suggested replacing the Native Americans with Africans to work the Spanish plantations. He regretted this suggestion later.
What was the Commercial Revolution?
A period in European economic expansions, colonialism, and mercantilism which lasted from approximately the 16th century until the late 18th century
