The Impact of Exploration on European Economy

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

1. How did exploration help capitalism?

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

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

2. What is the cottage industry?

2.1. Merchants needed to hire people to turn raw materials into products.

2.2. Many people were hired to work in cottages or homes.

3. How does a market economy grow?

3.1. Once people start having more money, they could now buy and sell more things.

3.2. If a product was in high demand and their wasn't much of the supply the product would be very expensive.

3.3. A market economy happens when the prices are determined by supply and demand.

4. What is mercantinism?

4.1. Countries thought that the best way to gain power is to save money.

4.2. So people started increasing exports and decreasing imports/

4.3. People even started building colinies to to make and save money.