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. As people started earning more money they bought and sold more things.

1.2. If a product was really expensive it was because there was a high demand and not many of that product.

1.3. A market economy is when prizes are determined by supply and demand.

2. What is the cottage industry?

2.1. Merchants hired people to turn raw materials into products. The people that were hired mostly worked in cottages.

2.2. Many products were created this way. This was called the cottage industry.

3. How did exploration help capitalism?

3.1. Capitalism when people invest money on something to get money back.

3.2. As people started to explore more places and trade with more people, it gave people ideas to invest money on companies.

4. What is mercantilism?

4.1. Countries saved up money because they thought it was the best way to gain power.

4.2. To save money they increased the stuff that they sold and decreased the stuff they bought

4.3. Countries also made colonies in other places to get more money.