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The Commercial Revolution. Aim/Goals: Why was the Commercial Revolution considered a turning point in world history? Do Now: Why would someone want to open a business today? What are the risks? What are the benefits?

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the commercial revolution
The Commercial Revolution
  • Aim/Goals: Why was the Commercial Revolution considered a turning point in world history?
  • Do Now: Why would someone want to open a business today? What are the risks? What are the benefits?
  • Homework: Write a newspaper article for the NY Times, comparing the increase of trade that has taken place over the past 60 years, with changes which took place during the Commercial Revolution. Which period of time saw the greatest changes take place? Explain.
slide2

The Commercial Revolution marked

an important step in Europe from

local economies to a global economy.

E. Napp

capitalism
Capitalism
  • Merchants and bankers laid the foundations for capitalism.
  • In a capitalist system, business owners risk their capital (money) to start new businesses hoping to make profits.
  • Individuals formed joint-stock companies.

E. Napp

slide4

A stock certificate represents partial

ownership in a business.

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joint stock companies
Joint Stock Companies
  • A Joint stock company is a privately owned company that sells stock or partial ownership in the company to investors.
  • Investors risk their capital or money when they purchase stock.
  • If the company is successful, the investor receives his share of the profits.

E. Napp

slide6

Joint stock companies were sometimes

given charters to establish settlements

in the “New World”.

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slide7

European

kings

increased

their

wealth and

power

through

conquest

and

colonization.

E. Napp

slide8

While European Kings and capitalists

increased their wealth, Native American

Indians and Africans were terribly exploited.

E. Napp

questions for reflection
Questions for Reflection:
  • How did European nations increase their wealth and power?
  • Define capitalism.
  • Why did individuals invest in Joint stock companies?
  • What was the relationship between a mother country and a colony?

E. Napp