The Impact of Europe on European Economies

1. How does a market economy grow?

1.1. People that had money, they could sell and buy products.

1.2. If a product was high in demand and there wasn't really much of that product than it would be expensive.

1.3. A market economy is when the prices are determined depending on its demand and supply.

2. What is mercantilism?

2.1. Many countries thought that by saving money, they will become powerful.

2.2. They believed that to become powerful they needed to sell MORE products and buy LESS products.

2.3. Another thing that they did to get more power was to establish colonies in other places.

3. How did exploration help Capitalism?

3.1. Capitalism is basically where you increase on money by starting a business.

3.2. Exploration helped capitalism because the more exploration, the more trade and this gave people to invest in businesses.

4. What is a cottage industry?

4.1. Traders or merchants had to ire someone to create their raw materials into an actual product. In addition, those products were made in little homes called cottages.

4.2. Many products were created this way and so this is called the cottage industry.