The Impact of Exploration on European Economies
by Danae Yepez
1. How did Exploration help Capitalism?
1.1. Capitalism is an economic based on investment of money for profit.
1.2. Exploration led to trade which provided money to invest in companies.
2. How does market economy grow?
2.1. If a product was high demand and there was not many of this product then it will be expensive.
2.2. Market economy happens when prices are determined by supply and demand.
3. What is the cottage industry?
3.1. Merchants needed to hire people to make raw material to something people wanted to buy and many people were hired to work in cottages. This is called cottage industries.
4. What is mercantilism?
4.1. Countries believed the best way to gain power was by saving money.
4.2. For this to happen they increased exports and decreased imports.
4.3. Another way was by establishing colonies in other areas to gain money.
