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 did exploration help capitalism?

1.1. Capitalism is an economic system based on spending some money so that you could get money in profit.

1.2. As more people started to explore more people began to trade which gave poeple more money to invest companies.

2. How does a market economy grow?

2.1. Once people started to gain more money, they could start buying and selling more things.

2.2. If a lot of people wanted a product and there wasn't a lot of that product it could be sold for a very expensive price.

2.3. A market economy is when a product's price is determined demand and supply.

3. What is the cottage industry?

3.1. People that made and sold products needed to hire people to turn raw materials into actual products.

3.2. A lot of products were created this way and this was the cottage industry.

4. What is mercantilism?

4.1. Countries thought that the best way to build power was to save money and not spend any money.

4.2. They increased selling things and they decreased buying things.

4.3. They also made colonies in other places around the world so that they could get more money by getting products there and making there products and having them sold.