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Explore the fundamental concepts of modern capitalism, including the economy's components, capitalism as an economic system, banking functions, joint-stock companies, and the significance of mercantilism in wealth accumulation. Discover the impact of the Columbian Exchange and ponder key questions about explorers, colonization, and global gains.
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Chapter 1 Section 2 The Rise of Modern Capitalism
What does the word economy mean? A country’s economy involves: • The workers • The businesses • The type of money used • The resources of an area • What items are traded
What is Capitalism? • Capitalism is an economic system in which money is invested in business.
What do Banks do? • Loan money to people or businesses • Some of the first bankers were wealthy families from Italy, such as the Medici
What are Joint-Stock Companies? • Organizations that sold stock, or shares, in a business or money making opportunity
Mercantilism • A nation becomes more wealthy by building up its supply of bullion or gold and silver.
Questions • Why would explorers need banks and Joint-stock companies? • Why would countries in Europe want to set up colonies • What could European countries gain from the Americas, Asia, & Africa?