The Impact of Exploration on European Economies

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The Impact of Exploration on European Economies by Mind Map: The Impact of Exploration on European Economies

1. How did exploration help capitalism?

1.1. Capitalism is an economic system based when you investment money for a profit.

1.2. The more exploration led the more to trade, which gave people money to invest in companies.

2. How does a market economy grow?

2.1. The market economy is when prices are determined by supply and demand.

2.2. When people started to have more money, they could now buy and sell more things.

2.3. If a product was in high demand and there wasn't much of a supply of that product, it could be very expensive.

3. What is the cottage industry?

3.1. Merchants needed to hire people to turn raw materials into products. Many people were hired to work in cottages, or homes.

3.2. Lots and lots of products were created this way. This was called the cottage industry

4. What is mercantilism?

4.1. Countries thought the best way to build power was to save money.

4.2. What they do is they increased expore and decreased imports.

4.3. They also established colonies in other places to get even more money