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 the economic system based on investment of money for profit.

1.2. People got money to invest from trade. Exploration led to trade because explorers found ways to get to places to trade with exploration.

2. What is the cottage industry?

2.1. Merchants would hire people to work from their home. Those people would turn raw materials into products to sell.

2.2. This was called the cottage industry and many new products were created this way.

3. How does A market economy grow?

3.1. Since people had more money they could now sell and buy things.

3.2. If many people wanted a item that had a limited supply the price of that item would be very high.

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

4. What is mercantilism?

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

4.2. By increasing exports (what they sold) and decreasing imports (what they bought) they were able to save money.

4.3. Establishing colonies was another way to get money.