The global exchange that began with Columbus's voyage introduced new food crops and ideas that changed the world. The Columbian Exchange brought potatoes and corn from the Americas to Europe, fueling population growth. This eased food shortages and allowed more people to migrate. New economic ideas like capitalism and entrepreneurs arose alongside inflation and price increases. Joint stock companies helped fund overseas ventures by pooling many small investments and sharing profits or losses. Over centuries, this global contact shifted influence from landowners to merchants and a growing middle class, though most workers remained poor.

1. Effects of Global Contact
The World Effect

2. Definitions

1. Columbia Exchange- A vast global
exchange of food and material that began
with Christopher Columbus's voyage.

2. Inflation- A rise in prices that is due to a
sharp increase in the amount of money
available.

3. Price Revolution- The period in
European history when inflation rose
rapidly.

3. Definitions Cont.

4. Capitalism- An economic system in which
most business are owned privately.

5. Entrepreneurs- people who take on financial
risk to make profits. Key to the success of
capitalism

6. Mercantilism- a believe that a countries wealth
was in its gold and silver treasure.

7. Tariff- taxes on imported goods. This
protected local products.

4. Columbian Exchange

Named for Christopher Columbus because the
exchange of goods began with him.

Introduced new food items to Europe such as
potatoes, corn, and tomatoes.

2 of these items corn and potatoes became
important for their ability to be grown and stored.

They allowed the population growth that took
place

5. The global population explodes

The food supplied by the Columbian
Exchange allowed a population increase

This also allowed a mass migration of
settlers to the new world.

Solved 2 major problems from the old
world
− Food shortage
− Limited land

6. New Economic Ideas

With the new economic standards allowed
new business practices to grow.

Capitalism

Entrepreneurs

The price revolution

Tariffs

Inflation

7. Joint Stock Companies

Allowed people to pool small investments

To raise large sums of money that was
need for overseas ventures

If venture made money people shared
profits.

If Venture failed people only lost small
investment

8. Example of
Joint Stock Company Venture

Merchants bought tea to send to Boston
− King enacted a new tax on tea
− Merchants thought they would make
large profit

Boston Tea Party
− Revolutionaries dressed as Native
Americans dumped tea in harbor
− Merchants lost investment

10. Impact on European Society

Took centuries to feel impact
− Merchants became more wealthy
− Noblemen who held their wealth in land
lost influence
− Strong middle class developed
− Most workers still lived in poverty