Impact of exploration on European economies

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Impact of exploration on European economies by Mind Map: Impact of exploration on European economies

1. How does a market economy grow?

1.1. People had more money which they could now buy or sell new things.

1.2. Now the price of the things was determined by supply and demand.

1.3. Supply and demand is like the amount of money needed to buy some thing goes up if a lot of people want it and there is very few.

2. What is the cottage industry?

2.1. To pay less people sent there raw material to get made into things that can be used.

2.2. Many of the items brought back from trade went through this process called the cottage industry.

3. How did exploration help capitalism?

3.1. Capitalism is a system used to invest money on something to get profit.

3.2. The more exploration led to more money which people could invest.

4. What is mercantilism?

4.1. Mercantilism is the thought that power comes from the money that you save and make.

4.2. One way of doing that is by increasing exports and decreasing imports.

4.3. Another way is to establish colonies in other places to make more money.