The Commercial Revolution

what did european nations compete for

overseas markets, colonies, and resources

The competition between european nations created what

mercantilism (a new economic practice)

the commercial revolution cause what

globally interconnected world and a period of great economic book in europe

what is mercantilism

An economic practice adopted by European colonial powers in an effort to become self-sufficient.

what is mercantilism based on

the theory that colonies existed for the benefit of the mother country

How did mercantilism measure a nation’s wealth

having more gold and silver than others and a good balance of trade

what is a good balance of trade

A country had to export (sell) more goods than they import (bought) to gain wealth

what did mercantilist result in (colonies)

colonies being forbidden from starting their own manufacturing systems

Because of colonies being forbidden from starting their own manufacturing systems they are

limited by the economic needs of the parent country

being limited by the economic needs of the parent country did what for the colonists

angered them

what was the first global currency

pieces de ocho (pieces of eight)

pieces de ocho were a what currency

spanish

The effect of commercial revolution is mainly

European conquests increased trade and changed economies in Europe led to Inflation in Europe

Inflation occured in europe because of

an increase in gold and silver and a lack of goods

what is inflation

more money coming in then goods available, leading prices to rise

competition for colonies sparked what

international/global wars

the idea of colonization leads to what

european imperialism