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1. Europe's rural population grew and inflation gradually increased. Gold and Silver benefitted European Economy. This led to the Commercial Revolution, which was "capitalistic" and "nation centered". Guilds and local work became less useful. Peasant work was used more.
2. New Entrepreneurs, The Price Revolution, Population, Growth, The "Putting Out" System
3. Why was the putout system more effective than the previous system?

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1.  Even though Portugal established commercial stations at Goa, Aden, Hormuz, and East Africa, it did not culturally influence the Americas.  Portuguese explorers such as Vasco da Gama used force to gain power.  Explorers were ruthless in their explorations and devastated cities.  Portugal established an empire and sent 12 ships per year.  Portugal no longer needed to rely on other European trade cities like Venice for goods.  A treaty between the Spanish and Portuguese divided their territorial expansion in 1494.

2. Key Terms: Conquistadors, Pedro Cabral, Vasco da Gama, and Malacca.

3.  Why did the Portuguese resort to violence in their expansion?

4.

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1. During the late 15th century with the opening of the Atlantic, Spain expanded into the New World, creating changes in both Europe and the New World. The Spanish Empire established its authority in the Caribbean, central America, and South America to reap benefits for the motherland.

2. Black legend
Conquistadors
Encomienda system
Hernan Cortes

3. Do the benefits that European civilizations reaped in the Americas outweigh the moral considerations of colonizing?

4.

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During this time there was a change in the definitions of capital and labor where labor became less for yourself and more for the enterprise as a whole and capital became more enterprised-based. Because of this, a larger gap grew between the workers and the head of the enterprise.
In order to increase trade, rulers overtly protected local merchants and enterprises that were selling products abroad.
Key terms:
1) Capital: Profit
2) Labor: Workforce
3) Mercantilism: the belief that a government should support trade in order to boost the economy and gain more power.
4) Commercialism: practices to increase profit.
Discussion questions:
How did the growing gap between capital and labor encourage mercantilism?
How did mercantilism and this gap of power affect social structures?

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