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. What is the cottage industry?

1.1. Merchants needed to hire people to turn not so good materials into products.

1.2. Many products were created at home. This was called cottage industry.

2. A market economy is when the prices are determined by supply and demand.

3. How did exploration help capitalism?

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

3.2. More explorations led to more trade which meant that it gave people the opportunity to invest money in companies.

4. How does a market economy grow?

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

4.2. If a product was in high demand and if there wasn't enough people selling that product they could sell it for more and that product can be very expensive.

5. What is mercantilism?

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

5.1.1. They increased what they sold and decreased what they bought.

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