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 does a market economy grow?

1.1. Once people started to have more money, they could now buy and sell more things.

1.1.1. If a product was high in demand and their was not much of a supply of it would be very expensive. A market economy happens when the prices are determined by supply and demand.

2. What is mercantilism?

2.1. Countries thought that the best way to build power was to save money to make them stronger as a country.

2.1.1. They did this buy increasing what they sold and decreasing what they bought.

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

3. How did exploration help capitalism?

3.1. More exploration led to more trade, which gave people money to invest in companies.

3.1.1. Capitalism is an economic system based on investment of money for profit.

4. What is the cottage industry?

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

4.1.1. Lots of products were created this way and this is called the cottage industry.