Age of Exploration
During the Age of Exploration, trade was very important because it caused the triangular trade. The continent Europe (mainly the countries Spain and Portugal) changed the economy of Europe in the Age of Exploration.
Spain changed the economy when Christopher Columbus was set to find Asia going west of the Atlantic. Instead of finding Asia, Columbus found a new land, known as the United States of America. Columbus finding the U.S. changed the economy because, he found new land. When Columbus was there, he saw taino that looked like Indies, so he called them Indians. The spanish also changed the economy by bringing over crops such as sweet potatoes and pineapples in the U.S, once Columbus proved that there was a new land. In
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Capitalism made merchants very wealthy, because they traded with so many places around the world. Market economy was when a buyer really wanted something, the seller would increase the price so they could get more money. Cottage industries were the closest thing they had to factories and it was where merchants would make there own items from raw materials and sell them. Mercantilism was an economic system that Europeans used to gain power for their mother country. Europeans traveled around the world to make colonies trade with the mother country, which had an effect on the economy. The colonies only existed because they have to serve the mother country. They tried to reduce the price of what they were buying and increase the price of what they were selling so they could increase their wealth, or they would get raw materials and make manufactured goods to sell for a high price. Triangular trade was when the Americas, Europe, and Africa traded and it formed a Triangle. Americas would trade raw materials, such as lumber and cotton for shirts, furniture, and manufactured goods. When Africa traded with Europe, they would trade gold and iron and when the Americas traded with Africa, they would trade raw materials for