Chapter 6: The Revival of Capitalism and the Expansion of Europe

Question 1

Capitalism

Answer 1

“an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations”

Question 2

Decline of capitalism

Answer 2

Capitalism declined in the middle ages with serfs, guilds, and Church policies

Question 3

Growth of trade

Answer 3

Medieval system declined as trade increased; Italian cities and Hanseatic League began significant trade

Question 4

Banking

Answer 4

banking for interest grew, such as with the Medicis in Florence and the Fuggers in Germany

Question 5

Motives for exploration

Answer 5

Establishing direct and efficient trade; religious conversion

Question 6

Advances encouraging trade

Answer 6

Better compasses, astrolabe

Question 7

Henry the Navigator

Answer 7

Explored Atlantic, setting up bases for Portugal on islands and the African coast

Question 8

Portuguese trade

Answer 8

Set up bases throughout Africa and Asia to facilitate trade

Question 9

Columbus

Answer 9

Established a base on Hispaniola for Spain

Question 10

Government of Spanish America

Answer 10

Strong royal authority; Council of Indies, viceroys

Question 11

John Cabot

Answer 11

explored North America for England