Economic Development and Mercantilism

#🌍 Mercantilism and Global Trade 🌍

This section is crucial for understanding the economic drivers of European expansion and the transatlantic slave trade. It often appears in both multiple-choice and free-response questions. Make sure you understand the core concepts and their interconnectedness.

# What is Mercantilism? 🤔

• Definition: Mercantilism is an economic theory that emphasizes a finite amount of wealth in the world. Nations aimed to accumulate as much wealth as possible, measured primarily in gold and silver. The goal was to achieve a favorable balance of trade (exporting more than importing) to become self-sufficient and powerful.

• Key Idea: Wealth = Power. Nations wanted to control resources and markets to increase their national strength. Think of it like a zero-sum game where one nation's gain is another's loss.

• Colonies' Role: Colonies were essential to mercantilism. They provided:

  • Raw materials and resources (including precious metals)
  • Markets for the mother country's goods

# The Columbian Exchange 🔄

• Definition: The transfer of plants, animals, people, technology, diseases, and culture between the Old World (Europe, Asia, Africa) and the New World (Americas).

• Impact: It revolutionized global trade and agriculture. New foods like potatoes, corn, and tomatoes became staples in Europe, Asia, and Africa. 🌽

• Positive and Negative: While it diversified diets and increased trade, it also led to the spread of devastating diseases to the Americas, which decimated indigenous populations.

# Rise of Consumer Culture 🛍️

• Definition: Increased availability of and demand for luxury goods.

• New Goods: Items like silk, sugar, chocolate, coffee, tobacco, and rum became popular across social classes. ☕

• Impact: This demand fueled the establishment of plantations and mining operations, leading to an increased reliance on enslaved labor.

• Cycle: Consumer demand for goods...