The Columbian Exchange is the exchange of goods and disease between the European countries and America. The European countries brought livestock to America and gain new types of food from America from the development of agriculture. With the new types of food, the traditional cuisines changed, population in Europe increased, making Europe more economically developed. However, population in American decreased with the new diseases from Europe such as small pox.
Mercantilism is a governmental economic policy stating that a nation’s power depends on its wealth because wealth led to conquests, colonization, and good national defense. This policy led to intense competition for wealth during the 1500s and 1600s. To create a favorable balance of trade, the country exported more goods than it imported, and imposed tariffs on foreign goods. Slaves from colonies worked for free, thus reduced the costs of productions. More manufactured goods were exported with the subsidies given from government to industries. This idea prompted the rich merchants to hold more power in their towns while most people still remained poor.
Capitalism is an economic system based on private ownership and production to gain profit. Merchants became rich by importing raw materials from colonies, and exporting manufactured goods. Join-stock companies formed when overseas ventures are too expensive to afford. Investors pool their money to achieve profit and they share profits based on their shares. Rich merchants invest more business ventures, resulting the increase of business activities in Europe.
These new patterns of trade is the most important development compare to the other developments because it is the development that affected the life and economy in Europe the most directly. New types of food were introduced, and the population greatly increased. New economic systems were created, resulting more business activities, bringing power and wealth to the nations. Events such as the voyages of Columbus or Magellan were not as important because their achievement of exploring new lands around the world led to the new trade patterns, and the new trade patterns were the one that had the direct impact on society. This is why the new trade patterns were the most important development during the Age of Exploration.