• Examine the origins of modern capitalism; the influence of mercantilism and cottage industry; the elements and importance of a market economy in 17th century Europe; the changing international trading and marketing patterns, including their locations on a world map; and the influence of explorers and map makers.

Vocabulary

:

1. The Beginnings of Capitalism

   The Price Revolution

   • an important part of capitalism is a free market
   • the price of food and goods whet up
   • two causes: increased demand, gold and silver from the Americas

     Changes in Agriculture

   • an important part of capitalism is landownership
   • land owners made money from their property
   • peasants worked as farm laborers or looked for new jobs

     Changes in Industry

   • some peasants worked in cottage industries (wool cloth)
   • coal mines, ironworks, chocolate industries

     A Market Economy

   • The English and Dutch moved away from a traditional economy
   • market economy forces of supply and demand set prices
   
   
2. Mercantilism

   The Mercantilist Theory

   • main goal of trade was to make a nation more powerful
   • money paid for a powerful Army and Navy
   • export more valuable goods than imported

     The Impact of Mercantilism

   • tax imports to keep foreign goods out
   • founded colonies for raw materials
   • Sellers' country richer buyers' country poorer

Summary: At the end of the Middle Ages, capitalism, a new type of economic system, a rose in Europe. Mercantilism, and economic theory based on overseas trade, also emerged in Europe.

Study Guide Questions

1. Workbook Chapter 19, section 4 (Page 247)
2. Answer three of the study guide questions using complete sentences.
3. Draw a picture of something important from this section and summarize this section of the text (three sentences minimum).