The Impact Exploration on European

1. How does a market economy grow?

1.1. Once people started to have more money they could now buy and sell more things.

1.2. If a product was in high demand and there was not much of a supply of that product it could be very expensive.

1.3. A marker economy happens when prices are determined by supply and demand.

2. What is mercantilism?

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

2.2. To do this they increased exports (what they sold and decreased imports what they bought).

2.3. They also establlshed colonies in other places to get even more money

3. How did exploration help capitalism?

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

3.2. more exploration led to more trade which gave people money to invest in companies.

4. What is the cottage industry?

4.1. Merchants needed to hire people to turn raw materials in to products.

4.2. Lots and lots of products were created this way. this is called the cottage industry.