Th Impact of Exploration on Europeans Economies

1. What is the cottage industy?

1.1. Merchants hired people to turn matterials into new products.

1.2. Many products were made this way. This was called the "Cottage Indrustry".

2. What is mercantilism?

2.1. The thing that countries thought was the best way to build power was to save money.

2.2. They increased exports and decreased imports to do this.

2.3. People also established colonies in other places to get even more money.

3. How did exploration help capitalism?

3.1. It is a economical system based on a investment of money for profit.

3.2. The increase of exploration that people did was what led to more trading. This gave people more money to invest in companies.

4. How does the market economy grow?

4.1. When a product was in a high demand and there wasn't much of a supply of that product, it could cost alot of money.

4.2. When prices are determined by supply and demand its called "Market Place".