Chapter 3 Section
5
129
SECTION
Vocabulary Builder
5
5
Step-by-Step Instruction
L3
Objectives
As you teach this section, keep students focused on the following objectives to help them answer the Section Focus Question and master core content.
■
Explain how European exploration led to the Columbian Exchange.
■
Analyze the commercial revolution.
■
Understand the impact that mercantilism had on European and colonial economies.
Prepare to Read
Build Background Knowledge
Ask students to recall what they know about the establishment of European colo-nies in the Americas. Ask what impact they predict the colonies will have on the economies of Europe.
Set a Purpose
■
WITNESS HISTORYWITNESS HISTORY
Read the selection aloud or play the audio. Ask
How do the visuals reinforce the idea that Smith expresses?
(They both focus on trade: the powderhorn works as a trade route map, and the print shows a busy trading port in the West Indies, both the result of the discovery of the Americas.)
AUDIO
Witness History Audio CD,
Uniting the World
■
Focus
Point out the Section Focus Question and write it on the board. Tell students to refer to this question as they read.
(Answer appears with Sec-tion 5 Assessment answers.)
■
Preview
Have students preview the Section Objectives and the list of Terms, People, and Places.
■
Have students read this section using the Paragraph Shrinking strategy (TE, p. T20). As they read, have students fill in the flowchart describing the sequence of events that resulted from global exchange in the 1500s and 1600s.
Reading and Note Taking Study Guide,
p. 145
Use the information below and the following resources to teach the high-use word from this section.
Teaching Resources, Unit 1
p. 47;
Teaching Resources, Skills Handbook,
p. 3
High-Use Word Definition and Sample Sentence
dispersal, p. 128
n.
scattering, spreading ofThe
dispersal
of water and supplies was part of the relief effort after the hurricane.
L3
55Effects of Global Contact
Objectives• Explain how European exploration led to the
Columbian Exchange.• Analyze the commercial revolution.• Understand the impact that mercantilism had on
European and colonial economies.
Terms, People, and PlacesColumbian Exchangeinflationprice revolutioncapitalism
entrepreneurmercantilismtariff
Reading Skill: Recognize Sequence Create a flowchart like the one below to keep track of the events that resulted from global exchange in the 1500s and 1600s.
The voyages of exploration in the 1500s and 1600s marked thebeginning of what would become European domination of theglobe. By the 1700s, European exploration had brought majorchanges to the people of Europe, Asia, Africa, and the Americas.
The Columbian ExchangeWhen Columbus returned to Spain in March 1493, he broughtwith him plants and animals that he had found in the Americas.Later that year, Columbus returned to the Americas with some1,200 settlers and a collection of European animals and plants. Inthis way, Columbus began a vast global exchange that would pro-foundly affect the world. Because this exchange began withColumbus, we call it the Columbian Exchange.
New Foods and Animals In the Americas, Europeans found avariety of foods that were new to them, including tomatoes, pump-kins, peppers. They eagerly transported these to Europe. Two ofthese new foods, corn and potatoes, became important foods in theOld World. Easy to grow and store, potatoes helped feed Europe’s rap-idly growing population. Corn spread all across Europe and to Africaand Asia, becoming one of the world’s most important cereal crops.
Europeans also carried a wide variety of plants and animals tothe Americas, including wheat and grapes from Europe and bananasand sugar cane from Africa and Asia. Cattle, pigs, goats, and chick-ens, unknown before the European encounter, joined the NativeAmerican diet. Horses and donkeys transported people and goodsquickly. Horses also provided the nomadic peoples of western NorthAmerica with a new, more effective way to hunt buffalo.
A trading post in the West Indies thrives in the mid-1500s; a powder horn is inscribed with North American fur trading routes. Uniting the World
“ The discovery of America, and that of a passage to the East Indies by the Cape of Good Hope, are the two greatest and most important events recorded in the history of mankind. By uniting, in some measure, the most distant parts of the world, by enabling them to relieve one another’s wants, to increase one another’s enjoyments, and to encourage one another’s industry, their gen-eral tendency would seem to be beneficial.”—Adam Smith, The Wealth of Nations, 1776
Focus Question How did the voyages of European explorers lead to new economic systems in Europe and its colonies?
EffectsColumbianExchange
Causes
•••
•••
•••
WITNESS HISTORYWITNESS HISTORY AUDIO
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130
The Beginnings of Our Global Age: Europe and the Americas
Connect to Our World
Teach
The Columbian Exchange
Instruct
■
Introduce: Vocabulary Builder
Have students read the Vocabulary Builder term and definition. Ask stu-dents to predict the consequences of the global
dispersal
of goods, ideas, and technology. Then have them read to find out whether their predictions are accurate.
■
Teach
Trace the changes that occurred because of the Columbian Exchange. Use the Think-Write-Pair-Share strat-egy (TE, p. T23) and ask
What might be some of the unmentioned costs of the Columbian Exchange?
(There may be environmental costs as new species invade different ecosystems, political costs as people invade other societies, economic costs as one system of exchange disappears and another takes its place, and so on.)
■
Analyzing the Visuals
Have small groups of students analyze the two images on this page. Ask them to dis-cuss what these images show about the Columbian Exchange. Then ask them to think of consequences that these images
don’t
show about the Colum-bian Exchange.
Independent Practice
Display
Color Transparency 94: Navajo Pictographs.
Use the lesson suggested in the transparency book to guide students in independent practice.
Color Transparencies,
94
Monitor Progress
As students fill in their flowcharts, circu-late to make sure they understand the events that resulted from global exchange in the 1500s and 1600s. For a completed version of the flowchart, see
Note Taking Transparencies,
p. 127A
Answers
The Columbian Exchange made more nutri-tious foods available to people around the world, spurring population growth.
Caption
It shows the horse aiding in hunting; its imagery suggests the horse was attuned to the hunter and part of his culture.
Connect to Today
Throughout most of history, the human population remained less than 500 million. After 1600, however, fueled in part by the spread of food crops during the Columbian Exchange, popula-tion began to grow slowly. Then, in the twentieth cen-tury, it increased dramatically as improved sanitation, antibiotics, and a revolution in agriculture lowered the
death rate but left the birthrate unchanged. The popu-lation is still climbing today. Ask students to consider what the population increase may have meant in the 1600s and what it means today. What political, social, and economic consequences does overpopulation have, and what might be some solutions?
L3
The Global Population Explodes The transfer of food crops fromcontinent to continent took time. By the 1700s, however, corn, potatoes,manioc, beans, and tomatoes were contributing to population growtharound the world. While other factors help account for the populationexplosion that began at this time, the dispersal of new food crops fromthe Americas was certainly a key cause.
The Columbian Exchange also sparked the migration of millions ofpeople. Each year shiploads of European settlers sailed to the Americas,lured by the promise of a new life in a land of opportunities. Europeansalso settled on the fringes of Africa and Asia, places made known to thembecause of exploration. In addition, as you have read, the Atlantic slavetrade forcibly brought millions of Africans to the Americas.
In some parts of the world, populations declined as a result ofincreased global contact. The transfer of European diseases, such assmallpox and measles, decimated many Native American populations.Other populations were wiped out as a result of conflicts.
Why did the global population explode?
A Commercial RevolutionThe opening of direct links with Asia, Africa, and the Americas had far-reaching economic consequences for Europeans and their colonies.
The Price Revolution Strikes In the 1500s, prices began to rise inmany parts of Europe. At the same time, there was much more money incirculation. A rise in prices that is linked to a sharp increase in the amountof money available is called inflation. The period in European historywhen inflation rose rapidly is known as the price revolution. Inflation
Horses Transform a ContinentThe Spanish brought horses to the Americas by ship (below). A Spanish saying went “After God, we owe the victory to the horses.” Horses also dramatically affected Native American life. An artist painted this scene of Plains Indians in 1830. How does the artist show the importance of the horse to Native American life and culture?
Vocabulary Builderdispersal—(dih SPUR sul) n. scattering; spreading of
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Chapter 3 Section
5
131
Solutions for All Learners
A Commercial Revolution
Instruct
■
Introduce
Ask students to read the introductory sentence and the black headings under A Commercial Revolu-tion. Have students predict what might happen economically as the gold and silver wealth of the Americas pours into Europe.
■
Teach
Trace the economic changes that occurred in Europe in the 1500s and 1600s, giving rise to capitalism. Ask
What factors contributed to Europe’s shift from local econo-mies to an international trading system?
(Nations pushed for overseas empires, the price revolution occurred, and entrepreneurs and capitalist inves-tors assumed the risks of doing busi-ness, spurring trade.)
Why did entrepreneurs want to bypass the guilds?
(Entrepreneurs wanted enough goods for large markets and greater freedom than the guilds allowed.)
■
Analyzing the Visuals
Direct stu-dents to the feature titled Tulipmania on this page. Have them read the text and examine the chart and graph. Ask them how they can tell that in 1620, a single tulip bulb cost more than six times the annual income of an average person.
Independent Practice
Have students fill in the flowchart tracking the sequence of events that led to new global economic systems.
Reading and Note Taking Study Guide,
p. 145
Monitor Progress
As students fill in their flowcharts, circu-late to make sure they understand the causes and effects of the commercial revo-lution. For a completed version of the flowchart, see
Note Taking Transparencies,
p. 127B
L1
Special Needs L2
Less Proficient Readers L2
English Language Learners
To help students with key concepts, have them create a concept web that shows the economic changes that took place in Europe. In the center of their paper they should write “A Commercial Revolution.” Next they should draw branches labeled Price Revolution, Infla-tion, Capitalism, Entrepreneurs, and the Putting Out System. Ask students to explain these labels with notes or a sketch that shows what they mean.
Use the following resources to help students acquire basic skills:
Adapted Reading and Note Taking Study Guide
■
Adapted Note Taking Study Guide, p. 145
■
Adapted Section Summary, p. 146
L3
In the 1630s, frenzy over a single good—the tulip—took hold in the Netherlands. People made and lost fortunes as the price of tulips rose from a handful of change to over a million dollars, only to abruptly crash. At the height of the mania, it was actually cheaper to purchase
a painting of tulips by a Dutch master than to buy one tulip bulb.
Price of a Single Tulip Bulb10,000
5,000
1,000
01620 1625 1630 1635 1640
Year
Pric
e in
gui
lder
s
SOURCE: The Tulip, 1999
Prices in Holland, 1630s
Average annual income
Price for a still-life painting oftulips by a Dutch master
Cost of a luxurious Amsterdamestate house
150 guilders
5,000 guilders
10,000 guilders
(Note: 100 guilders = approx. $12,500 in U.S. dollars today)
Joannes Busschaert painted Still Life of Tulips, Roses, Fruit, and Shells in the early 1600s. A tulip bulb with its flower is shown at right.
�
EffectsNewEconomicSystems
Causes
•••
• Capitalism••
•••
was fueled by the enormous amount of silver and gold flowing into Europefrom the Americas by the mid-1500s.
Capitalism Emerges Expanded trade, an increased money supply, andthe push for overseas empires spurred the growth of European capitalism,or an economic system in which most businesses are owned privately.Entrepreneurs, or people who take on financial risk to make profits, werekey to the success of capitalism. Entrepreneurs organized, managed, andassumed the risks of doing business. They hired workers and paid for rawmaterials, transport, and other costs of production.
As trade increased, entrepreneurs sought to expand into overseas ven-tures. Capitalists, because of their resources, were more willing to takerisks. Thus, the price revolution of the early modern age gave a boost tocapitalism. Entrepreneurs and capitalists made up a new business classdevoted to the goal of making profits. Together, they helped change localEuropean economies into an international trading system.
Exploring New Business Methods Early European capitalists dis-covered new ways to create wealth. From the Arabs, they adapted meth-ods of bookkeeping to show profits and losses from their ventures. Duringthe late Middle Ages, as you have read, banks increased in importance,allowing wealthy merchants to lend money at interest. Joint stock com-panies, also developed in late medieval times, grew in importance. Theyallowed people to pool large amounts of capital needed for overseas ven-tures. Individuals who invested in these companies could join in anyprofits that the company made. If the company lost money, individualswould only lose their initial investments.
Recognize Sequence Use a flowchart like this one to keep track of the sequence of events that led to new global economicsystems.
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132
The Beginnings of Our Global Age: Europe and the Americas
Careers
Mercantilism Arises
Instruct
■
Introduce: Key Term
Ask students to find the key term
mercantilism
(red in the heading and blue in the text) and explain its meaning. Why would a nation want to sell or export more than it buys? Why would it want to store up large supplies of gold and silver? Do modern nations have similar concerns?
■
Teach
Explain why and how nations adopted new economic policies to strengthen their economies. Ask
How did mercantilist nations strengthen their economies?
(They exported more than they imported, built up supplies of silver and gold, boosted production by exploiting resources, built roads, backed new industries, and established standard weights and mea-sures. They also allowed monopolies and imposed tariffs.)
■
Quick Activity
Display
Color Trans-parency 92: 18th-Century Social Caricature
to investigate the material culture of Europe during the colonial age. Use the lesson suggestion in the transparency book to guide a discussion.
Color Transparencies,
92
Independent Practice
Remind students that mercantilists believed that colonies existed for the ben-efit of the parent country. Ask students to write a paragraph explaining why they agree or disagree with the mercantilists.
Monitor Progress
■
Have students read their paragraphs to one another in small groups. Circulate and listen to the readings, making sure that students make logical arguments for or against.
■
Check Reading and Note Taking Study Guide entries for student understanding.
Answers
Merchants gave raw materials to a cottager to make into a product. Merchants then bought and sold the finished product for a profit.
COMPARING VIEWPOINTS
Sample: The winners are often those who wield the most wealth and power.
Craftsperson
Though guilds are mostly a thing of the past, certain crafts have survived into the modern world and continue to require years of traditional hands-on training, often in special craft schools or in an apprenticeship program with a master crafts-
person. Hand bookbinders, furniture-makers, jewelry-makers, violin-makers, glassblowers, restoration car-penters, and other craftspeople spend years learning from craft masters the special skills they need to build things of lasting value, beauty, and utility.
L3
Bypassing the Guilds The growing demand for goods led merchantsto find ways to increase production. Traditionally, guilds controlled themanufacture of goods. But guild masters often ran small-scale busi-nesses without the capital to produce for large markets. They also hadstrict rules regulating quality, prices, and working conditions.
Enterprising capitalists devised a way to bypass the guilds called the“putting-out” system. It was first used to produce textiles but laterspread to other industries. Under this system, for example, a merchantcapitalist distributed raw wool to peasant cottages. Cottagers spun thewool into thread and then wove it into cloth. Merchants bought the woolcloth from the peasants and sent it to the city for finishing and dyeing.Finally, the merchants sold the finished product for a profit.
The “putting-out” system, also known by the term “cottage industry,”separated capital and labor for the first time. In the 1700s, this systemwould lead to the capitalist-owned factories of the Industrial Revolution.
How did the “putting-out” system work?
Mercantilism ArisesEuropean monarchs enjoyed the benefits of the commercial revolution. Inthe fierce competition for trade and empire, they adopted a new economicpolicy, known as mercantilism, aimed at strengthening their nationaleconomies. Mercantilists believed that a nation’s real wealth was mea-sured in its gold and silver treasure. To build its supply of gold and silver,they said, a nation must export more goods than it imported.
The Role of Colonies To mercantilists, overseas colonies existed forthe benefit of the parent country. They provided resources and raw mate-rials not available in Europe. In turn, they enriched a parent country by
■ COMPARING VIEWPOINTS
Who Loses in a Trade War?In the 1990s, a trade war over bananas broke out between the United States and the European Union. The European Union wanted to buy bananas from small banana growers in its former colonies in Africa and the Caribbean. The United States, wanting to assist large South and Central American banana growers, responded by heavily taxing common European imports. In 2001, an agreement was reached that ended the trade war. Critical Thinking In a trade war, who are the winners and losers?
Everyone Wins
“The discrimination of the current illegal system iseliminated because all applicants will be treated equallyand each applicant gains market access in the sameproportion . . . . Dole believes that this system will benefitthose banana exporters that invest in the jobs, people,countries and infrastructure that it takes to grow markets,
open trade and compete. . . .”—Dole Food Company press release, 2001
The Less Powerful Lose
“St. Lucia continues to be concerned that the thrusttowards allowing market forces to totally determine thescope, structure and outcomes of economic activity, is notbeing counterbalanced by mechanisms to fairly distributewelfare gains and to protect the more vulnerable, smallstates like Saint Lucia, from the consequences of marketfailure. . . .”
—Earl Huntley, ambassador of Saint Lucia,in a statement to the UN, 2001
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Chapter 3 Section
5
133
Assess and Reteach
Assess Progress
■
Have students complete the Section Assessment.
■
Administer the Section Quiz.
Teaching Resources, Unit 1,
p. 46
■
To further assess student under-standing, use
Progress Monitoring Transparencies,
66
Reteach
If students need more instruction, have them read the section summary.
Reading and Note Taking Study Guide,
p. 146
Adapted Reading and Note Taking Study Guide,
p. 146
Spanish Reading and Note Taking Study Guide,
p. 146
Extend
Remind students that increasing national wealth is still a goal of modern govern-ments. In small groups, have students brainstorm what modern nations do to support business.
(Sample: build and maintain roads, bridges, ports, airports; provide tax incentives)
Ask students to debate whether they believe modern nations should do these things and why.
L3
L2L1
L2
L4
Answer
Merchants gained wealth, and the middle class prospered. Nobles did poorly, as the land they owned brought fewer benefits. Peasants either felt little change or suffered, falling into poverty.
Section 5 Assessment
1.
Sentences should reflect an understanding of each term, person, or place listed at the beginning of the section.
2.
The discoveries of wealth and new resources in the Americas encouraged European nations to set up colonies there and start new business ventures. This led Europe to shift from locally-based econo-mies to an international trading network.
3.
Positive: horses, food, and new technolo-gies. Negative: severe depopulation, dis-ease, displacement, and loss of lands.
4.
A capitalist society must allow individuals to take risks to make a profit; it must also have money for investment.
5.
They assumed that colonies existed solely for the benefit of the parent nation.
6.
Most Europeans were peasants or labor-ers to whom wealth and trade did not trickle down.
●
Writing About History
Responses should include specific evidence needed to persuade the reader that the writer’s thesis statement is correct.
For additional assessment, have students access
Progress Monitoring
Online
at
Web Code nba-1551.
55
serving as a market for its manufactured goods. To achieve these goals,European powers passed strict laws regulating trade with their colonies.Colonists could not set up their own industries to manufacture goods.They were also forbidden to buy goods from a foreign country. In addi-tion, only ships from the parent country or the colonies themselves couldbe used to send goods in or out of the colonies.
Increasing National Wealth Mercantilists urged rulers to adopt poli-cies that they believed would increase national wealth and governmentrevenues. To boost production, governments exploited mineral and timberresources, built roads, and backed new industries. They imposed nationalcurrencies and established standard weights and measures.
Governments also sold monopolies to large producers in certain indus-tries as well as to big overseas trading companies. Finally, they imposedtariffs, or taxes on imported goods. Tariffs were designed to protect localindustries from foreign competition by increasing the price of importedgoods. All of these measures led to the rise of national economies, inwhich national governments had a lot of control over their economies.However, modern economists debate whether mercantilist measuresactually made nations wealthier.
Impact on European Society By the 1700s,European societies were still divided into dis-tinct social classes. Merchants who invested inoverseas ventures acquired wealth, while theprice revolution hurt nobles, whose wealth wasin land. Economic changes took generations,even centuries, to be felt by the majority of Euro-peans, who were still peasants. The merchantsand skilled workers of Europe’s growing citiesthrived. Middle-class families enjoyed a comfort-able life. In contrast, hired laborers and thosewho served the middle and upper classes oftenlived in crowded quarters on the edge of poverty.
How did economic changes affect different Europeans?
Terms, People, and Places
1. For each term, person, or place listed at the beginning of the section, write a sentence explaining its significance.
2. Reading Skill: Recognize SequenceUse your completed flowcharts to answer the Focus Question: How did the voyages of European explorers lead to new economic systems in Europe and its colonies?
Comprehension and Critical Thinking
3. Identify Point of View How might a Native American assess the impact—both positive and negative—of the Columbian Exchange?
4. Draw Inferences What characteris-tics must a society have in order for capitalism to be possible?
5. Identify Assumptions What basic assumption did mercantilists hold about their colonies?
6. Synthesize Information Why did the economic changes of the time have lit-tle impact on many Europeans?
● Writing About History
Quick Write: Write the Body and Conclusion The body of a compare-and-contrast essay should include specific evi-dence to support your thesis. Suppose that you are comparing the effects of global contact on European merchants and Euro-pean peasants. Find evidence in this section that you can use to make this comparison.
A Dutch Merchant FamilyDutch artist Adriaen van Ostade painted this scene of a Dutch family in the mid-1600s. With the Netherlands’ trading wealth, even middle-class families could afford fine clothes, luxury goods, and paintings.
Progress Monitoring OnlineFor: Self-quiz with vocabulary practiceWeb Code: nba-1551
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