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Section 4Standards-Based Instruction

552 Chapter 19

Standards at a Glance

Students have just read about the found-ing of European colonies in the Ameri-cas. Here the focus will be on economic changes taking place in Europe and how they affected the new colonies.

Section Focus QuestionHow did capitalism and mercan-tilism develop?Before you begin the lesson for the day, write the Section Focus Question on the board. (Possible answer: Capitalism developed as prices, profits, and the money supply increased in Europe. Owners and merchants invested surplus money back into their busi-nesses and land to compete for the greatest profit. Mercantilism developed as a by-product of exploration and colonization. As nations became international empires, trade increased. It became more important to export more than one imported in order to maintain power.)

Prepare to Read

Build Background KnowledgeReview the feudal economy that existed in the Middle Ages (Chapters 14 and 16). Ask: How was that system already com-ing to an end before European explorers set out on their voyages of discovery? (Towns and trade were growing, as was the demand for goods that trade could acquire.) Explain that in Section 4, students will meet new economic ideas that replaced feudalism. Urge them to read on to learn about the concepts of capitalism and mer-cantilism.

Set a Purpose■ Form students into pairs or groups of

four. Distribute the Reading Readiness Guide. Ask students to fill in the first two columns of the chart.

Teaching Resources, Unit 7, Reading Readiness Guide, p. 76

■ Use the Idea Wave technique (TE p. T38) to call on students to share one piece of information they already know and one they want to know. Students will return to these worksheets later.

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Understanding Concepts The key con-cepts of this section, capitalism and mercan-tilism, are complex ideas. Assign students peer tutors with whom to read and discuss Section 4. Each pupil should read one sub-section at a time, and then meet with his or her tutor. The pupil may ask questions about any part of the text that presented

difficulties. Tutors should work with pupils to help them answer their own questions, and should explain the complex economic concepts covered in the section (checking their own understanding at the same time). Tutors should work with pupils until pupils can articulate a good basic understanding of both concepts.

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552 Chapter 19 The Age of Exploration

Section

4The Origins of Modern Capitalism

H-SS 7.11.3 Examine the origins of modern capitalism; the influence of mercantilism and cottage industry; the elements and importance of a market economy in seventeenth-century Europe; the changing international trading and marketing patterns, including their locations on a world map; and the influence of explorers and map makers.

E-LA Reading 7.1.1 Identifyidioms, analogies, metaphors, and similes in prose and poetry.

Reading Preview

Reading Skill

Identify AnalogiesAnalogies are another way to make compari-sons. In an analogy, two pairs of things are connected with the same type of link. Understanding the link between the first pair helps the reader understand the link between the second pair.

Vocabulary Builder

High-Use Wordsefficient (eh FIHSH uhnt), p. 554circulate (SER kyoo layt), p. 557

Key Terms and Peoplecapitalism (KAP iht uhl ihz uhm), p. 552cottage industry (KAHT ihj IHN duhs tree), p. 554traditional economy (truh DIHSH uh nuhl ih KAHN uh mee), p. 555market economy (MAHR kiht ih KAHN uh mee), p. 555mercantilism (MER kuhn tihl ihz uhm), p. 556

Background Knowledge By the end of the MiddleAges, many European towns had grown wealthy from trade.Overseas trade added more wealth. It also helped shape a newkind of economic system.

The Beginnings of CapitalismDuring the great voyages of discovery, a new kind of econ-

omy was emerging in Europe. This economic system came tobe known as capitalism. Capitalism is an economy based onthe private ownership of property and the use of property tocompete for profits, or gains, in a market.

The Price Revolution One important part of capital-ism is a free market, where sellers compete to supply goods.Buyers create a demand for goods when they offer bids forthem. The interplay of supply and demand determines theprices. In the 1500s, prices for food and other goods went up.This increase is called the price revolution.

A new kind of economy appeared in Europe after 1500.

Economic Background

Chapter 19 Section 4 553

Teach

The Beginnings of Capitalism

H-SS 7.11.3

Instruction■ Vocabulary Builder

High-Use Words Before teaching this section, preteach the high-use words efficient and circulate, using the strate-gy on TE p. 533.Key Terms Following the instructions on p. 7, have students continue to pre-view key terms.

■ Have students read The Beginnings of Capitalism, using the Structured Silent Reading strategy (TE p. T36).

■ To help students better understand the concept of capitalism, which is important to the understanding of this lesson, use the Concept Lesson, Capitalism. Provide students with copies of the Concept Organizer.

Teaching Resources, Unit 7, Concept Lesson, p. 81; Concept Organizer, p. 6

■ Ask: What do the terms supply and demand mean? (Possible answer: Supply is how much of an item is available; demand is how badly people want that item.) Invite students to suggest present-day examples of these terms at work, using items that they might buy.

Independent PracticeHave students begin to fill in the Interac-tive Reading and Notetaking Study Guide.

Interactive Reading and Notetak-ing Study Guide, Chapter 19, Section 4 (Adapted version also available.)

Monitor Progress

As students fill in the Notetaking Study Guide, circulate to make sure they under-stand the economic concepts presented in this section. Provide assistance as needed.

AnswerLink Past and Present Possible answer: Many present-day open-air or farmers’ markets contain outdoor stalls where peo-ple buy produce, baked goods, and so on, paying each vendor individually. In super-markets, people shop indoors, gathering what they want, and pay just once, at the end of their shopping.

Love That Chocolate! Chocolate was a discovery that Spanish explorers brought to Europe courtesy of the Aztecs. The Aztecs used cacao beans as a form of money and as the basis for a spicy but bitter beverage called chocolatl; the Spanish took out the bitterness, added other spices and sugar, and kept their chocolate drink a secret for almost a century. (Cortés called it

“the divine drink which builds up resis-tance and fights fatigue.”) Word got out, however, and in 1657, London opened the first chocolate house—where the well-to-do would meet to drink hot chocolate and discuss politics and social issues. Not until the Industrial Revolution was solid choco-late developed, mass-produced, and made affordable for the public.

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There were two causes of this price revolution. One was therapid population growth. More people created a demand formore food. However, farmers could not supply enough to keepup with the demand. As a result, food prices increased. Forexample, food was four to six times more expensive in Englandin 1640 than in 1500.

Gold and silver from the Americas also caused the price rev-olution. The precious metals added to the money supply inEurope. People had more money to pay for the limited suppliesof food and other goods. This also worked to drive prices up.

Higher prices meant bigger profits for landowners andmerchants. They used the profits to invest in their businesses.Using money, or capital, to make even more profits is a keypart of capitalism.

Changes in Agriculture Another important part ofcapitalism is landownership. In a capitalist economy, somepeople own the land, tools, and seeds needed to grow crops.They can buy and sell land for a profit. Landowners also getpaid in money for the crops they sell. Similarly, farmworkersearn cash for their work.

The price revolution benefited landowners. Higher pricesfor crops meant higher profits. To increase profits even more,Dutch and English landowners forced peasants off the land.The owners could then use all of their land to produce wooland other profitable farm products for sale.

A Market EconomyFarmers once grew food mainly to feed their own families. As cities grew, more and more farmers raised food for money. Food was sold in markets like the one shown here. Critical Thinking: Link Past and Present How are food markets today similar to or different from the one in this painting?

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554 Chapter 19

Instruction (continued)■ Display the transparency for the History

Interactive feature, Capitalism at Work. Discuss with students the key character-istic of this new economic system emerging in Europe.

Color Transparencies, Capitalism at Work■ After students have read Changes in

Agriculture, challenge them to think about the options that were available to peasants who were forced off a lord’s estate. Ask: How were peasants affect-ed by changes in agriculture? (They were no longer able to earn their livelihoods by serving a lord. Now they had to work for wages—either in agriculture or elsewhere.)

■ As students read Changes in Industry, ask: What were the advantages and dis-advantages of being a cottage-industry worker? (Possible answer: People who may have had few options for work now had a better opportunity to earn a living. Howev-er, they could not earn much money, and the protections afforded by guilds for consumers were avoided.)

AnswersIdentify Costs There were costs in culti-vating the sugarcane, in manufacturing, and in shipping.

Reading Skill Possible answers: air; oxygen

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Gifted and Talented

Researching Cottage Industry Today Is there a place for cottage industry in today’s high-tech world? Many people say that although their role in the economy overall may have changed, a wide variety of cottage industries are alive and well. Have students use the Internet (under your supervision) or other reference sourc-

es to research modern cottage industries, for example, home-based businesses involving personal computers, arts and crafts endeavors based in home studios, and community-service work from home-based providers. Invite students to share their findings in a group report or a panel discussion.

554 Chapter 19 The Age of Exploration

This change ended the old feudal system in the Nether-lands and in England. In these nations, serfs no longer farmedthe lord’s land in exchange for part of the crop. The peasantshad few options. They could work as farm laborers or seeknew ways to make a living.

Changes in Industry The price revolution also droveup prices for widely used goods, such as cloth. Like landown-ers, cloth merchants wanted to produce their goods in a moreefficient way. They hoped to make cloth more cheaply so theycould earn even bigger profits.

In England, cloth merchants used a clever system for mak-ing cloth. They bought raw wool at the cheapest prices theycould find and took it to nearby villages. There, they paid fam-ilies to spin and then weave the wool into cloth. When thecloth was ready, the merchants picked it up and sold it whereprices were highest.

These workers made the cloth in their own cottages. As aresult, the use of workers who work at home with their ownequipment is known as cottage industry.

Cottage industry was an early form of capitalism. The clothmerchants avoided the towns, where the guilds had set rules

E-LA 7.1.1 Identify AnalogiesIndustry needed raw

materials, such as wool, to survive. Complete this analogy: Raw materials are to industry as _____ is to breathing.

Vocabulary Builderefficient (eh FIHSH uhnt) adj.getting a job done with the least possible effort

Capitalism at WorkTK Critical Thinking: TK TK Explore Capitalism

at WorkVisit: PHSchool.comWeb Code: mxp-7195

Capitalism at WorkCapitalists invested money in many different industries in orderto make a profit. Dutch merchants invested in overseas coloniesto bring sugar to European markets. Critical Thinking: Identify Costs What costs were involved in bringing sugar to market?

1 CultivatingSugar plantations produced large quantities of sugar cane (right).

2 ManufacturingSugar cane was ground up and processed into sugar.

SSMM19.book Page 554 Monday, February 28, 2005 1:12 PM

History Background

Chapter 19 Section 4 555

Instruction (continued)■ Ask: What can you infer about tradi-

tional economies based on the descrip-tion of market economies in the text? (In traditional economies, prices and trade are influenced by forces such as guilds or government.)

■ Discuss with students how supply and demand influence prices. Tell students that increased demand for or reduced supply of a product tends to drive prices up. Low demand or high supply tends to drive prices down. Ask: How might supply of a product affect demand for that product? (Possible answer: If there is not enough of something on the market, the demand may be high as consumers compete with one another for the limited amount available.)

Answer

an economy based on the pri-vate ownership of property and the use of property to compete for profit

Women and Cottage Industry The mak-ing of cloth in the home was nothing new to Europe. European women had been weaving and sewing for centuries, making clothing for their families as well as doing piecework to sell. By the fourteenth centu-ry, knitting was also developing as a cot-tage industry. By the eighteenth century, women were spinning thread and yarn

rather than weaving. Spinning required only two small hand tools: a spindle and a distaff. Later, with the development of the large spinning wheel, women could do more work more quickly. Some women could earn their living solely with spin-ning. This ability to earn money gave women a new kind of value within a family.

Section 4 The Origins of Modern Capitalism 555

A Market Economy Over time, these changes in indus-try and agriculture transformed the English and Dutch econo-mies. They were the first European nations to move away froma traditional economy. A traditional economy is an economyin which the exchange of goods is based on custom.

By contrast, a market economy is one in which prices andthe distribution of goods are based on competition in a mar-ket. In a market economy, prices are not fixed by guilds, by thegovernment, or by custom. Instead, forces of supply anddemand set prices.

What is capitalism?

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ShippingLarge oceangoing ships transported the sugar from the colonies to European ports.

SellingMerchants sold the sugar to consumers throughout Europe. The price of a finished product depends on popular demand for it.

about cloth prices and quality. The merchants found willingworkers in the peasants who had been forced off the manors.These workers were paid in cash—though not very much—forthe cloth they made.

English capitalists also invested money in other industries.They started coal mines, ironworks, breweries, and shipyards.Dutch capitalists founded printing, diamond-cutting, sugar-refining, and even chocolate industries.

Explore Capitalism at Work

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556 Chapter 19

Mercantilism

H-SS 7.11.3

Instruction■ Have students read Mercantilism.

Remind students to look for causes and effects as they read.

■ At this point, display the color transpar-ency Routes of the Dutch East India Company. Ask: Why did the Dutch East India Company become rich and pow-erful? (It was at the heart of European mercantilism. Its ships formed the link between the mother country and her colo-nies.)

Color Transparencies, Routes of the Dutch East India Company■ As students read The Mercantilist Theo-

ry, have them complete this sentence: In mercantilism, a nation will grow wealthy if it _____ more than it _____. (exports; imports)

Independent PracticeHave students complete the Interactive Reading and Notetaking Study Guide. (Adapted version available.)

Monitor Progress

Tell students to fill in the last column of the Reading Readiness Guide. Ask them to evaluate if what they learned was what they had expected to learn.

Teaching Resources, Unit 7, Reading Readiness Guide, p. 76

Have students go back to their Word Knowledge Rating Form. They should rerate their word knowledge and complete the last column with a definition or example.

Teaching Resources, Unit 7, Word Knowledge Rating Form, p. 72

Answer

(a) From Netherlands, sail into the Atlantic Ocean and south around the southern tip of Africa into the Indian Ocean, then sail northeast to India, Dutch East Indies, and South Pacific Islands (b) Possible answers: They included trade with the Americas; they involved sailing across the open ocean; they included a wider variety of goods.

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Understanding Causes and Effects Dis-cuss some of the key points of Section 4 by having students complete and discuss sen-tences such as these: During the “price revolution,” food prices rose because of _____. (a greater demand for food than farmers could supply) Cloth merchants bought wool cheaply, had it woven cheaply, and sold

finished cloth where prices were highest, so _____. (they made a profit) Because most European nations believed in the mercan-tilist theory, they _____. (taxed imports; developed their colonies; made sure that buyers from other nations paid with gold and silver)

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NORTH AMERICA

SOUTHAMERICA

AFRICA

EUROPE

ASIA

AUSTRALIA

INDIA

CHINA

BRITAIN

PORTUGAL SPAIN

FRANCENETHERLANDS

From Manila To Panama

180° 150°W 120°W 90°W 60°W 30°W 30°E 60°E 90°E 120°E 150°E

60°N

30°N

30°S

60°S

0°Equator

180°0°

PACIFICOCEAN

PACIFICOCEAN

ATLANTICOCEAN

INDIANOCEAN

0 km

3,0000 miles

3,000

Robinson Projection

N

S

EW

Britain and possessions

France and possessions

Netherlands and possessions

Spain and possessions

Portugal and possessions

Trade route

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556 Chapter 19 The Age of Exploration

MercantilismAt about the same time that capitalism was developing, a

new economic policy developed. This policy grew out of theimportance of global trade. It is known as mercantilism.Mercantilism is an economic policy that promotes buildinga nation’s strength by expanding its trade. The goal was tobring as much wealth as possible into the country.

The Mercantilist Policy Mercantilists believed thatthe main goal of trade was to make a nation more powerful.Traders did so by selling goods in exchange for gold and silver.Money from trading these precious metals paid for a powerfularmy and navy.

Mercantilists argued that the best way to increase a nation’swealth was to export more valuable goods than it imported.

Mercantilism and World Trade, About 1775

Trade routes connected European nations with other parts of the world. European nations tried to import only from their own colonies to keep money within their own empires.

(a) Describe Describe the route used by merchants from the Nether-lands who traded in Asia and the Pacific.

(b) Contrast Turn to the map Medieval Trade on page 444. Based on that map and the one above, what are three ways that trade pat-terns had changed since the Middle Ages?

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Nations developed a new policy about increasing their wealth and power.

Chapter 19 Section 4 557

Assess and Reteach

Assess ProgressHave students complete Check Your Progress. Administer the Section Quiz.

Teaching Resources, Unit 7, Section Quiz, p. 85

To further assess student understanding, use the Progress Monitoring Transparency.

Progress Monitoring Transparencies, Chap-ter 19, Section 4

ReteachIf students need more instruction, have them read this section in the Interactive Reading and Notetaking Study Guide and complete the accompanying question. (Adapted version available.)

ExtendTo help students expand their understand-ing of capitalism at work, provide them with the Web Code below.

Web Code: mxp-7195

Writing Rubrics Share rubrics with students before they write their revi-sions.

Score 1 Revision makes some changes; parallel structure, if used, is awkward or illogical.Score 2 Revision may include an example of parallel structure; over-all, however, the revised passage is vague or otherwise weak.Score 3 Revision includes one or two examples of parallel structure, but the revised passage still could use some polishing.Score 4 Revision uses excellent par-allel structure to combine sentences and make related ideas clear and memorable.

Answer

the number of trading pat-terns increased as nations sought to sell goods to other nations for gold and silver; raw materials for products were often found in faraway lands

Section 4 Check Your Progress

1. (a) by how much of an item is available (supply) and how much the buyer is willing to spend to get it (demand)(b) Capitalism cannot exist without a free market, in which buyers and sellers determine prices.

(c) They led to the end of feudalism and a shift from a traditional economy to a market economy.

2. (a) Strength would come from wealth that nations achieved by exporting more goods than they imported.(b) Possible answers: Trade wars might erupt as many nations try to export more than they import; military wars might erupt as nations compete to found colonies in the same resource-rich areas.

3. rain

4. Yes. These are two factors in capitalism.

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Section 4 The Origins of Modern Capitalism 557

Section 4 Check Your Progress

The English merchant Thomas Mun explained mercantilism:

“. . . we must ever observe this rule: to sell more . . . yearly than we consume . . . in value.”—Thomas Mun

The Impact of Mercantilism Most European nationspracticed mercantilism. They taxed imports to keep foreigngoods out. They also founded colonies. Colonies provided rawmaterials, which the home country made into products to sellto other countries. Colonies bought the home country’s goodsbut were not allowed to trade with other nations.

Mercantilists focused on the money circulating amongnations. When traders sold goods, buyers in other nations paidwith gold and silver coins. This payment made the sellers’country richer and the buyers’ country poorer.

How did mercantilist policy affect trading patterns?

Looking Back and Ahead In this section, you learnedabout capitalism and mercantilism. In the next chapter, youwill read about other ideas that brought tremendous change.

For: Self-test with instant helpVisit: PHSchool.comWeb Code: mxa-7194H-SS: 7.11.3; E-LA: Reading 7.1.1

Comprehension and Critical Thinking1. (a) Identify How are prices

set in a free market?(b) Recall Why are free markets important for capitalism?(c) Analyze Cause and Effect How did capitalism and free markets affect agriculture in Europe after 1500?

2. (a) Explain What would make nations stronger, according to mercantilism?(b) Draw Conclusions How might this policy increase wars among nations?

Reading Skill3. Identify Analogies Higher

prices led to bigger profits for landowners. Complete this analogy: Higher prices are to bigger profits as rain clouds are to _____.

Vocabulary BuilderRead each sentence below. If it makes sense, explain why. If it does not, change the sentence to make it logical.4. Capitalism depends on a free

market and landownership.5. At the end of the Middle Ages,

Europeans moved toward traditional economies.

Writing6. Speakers use parallel structure

to help make their speeches more persuasive.

Rewrite the following sen-tence, using parallel struc-ture to give it a more persuasive tone:

Capitalism requires a free market in which buyers and sellers compete. It also needs landowners who can buy and sell land and its products.

Vocabulary Buildercirculate (SER kyoo layt) v. to move around or to go from place to place

5. No. Europeans moved from traditional economies to market economies.

6. Revisions should incorporate parallel structure without losing any of the orig-inal meaning.

558 Chapter 19

ObjectiveHistorians usually are objective in their reporting of events. However, the same cannot always be said of accounts by par-ticipants in those events: Personal attitudes and even bias can taint one’s views of people and their actions. Students need to be able to detect signs of bias in what they read, and this Analysis Skills lesson will teach them to examine a historical account for signs of stereotyping, a form that bias often takes.

Identify StereotypingInstructionHave students read each step aloud. Dis-cuss the following.

1. Have students read the passage. Ask: Who do you think was writing the passage? (probably a missionary) How can you tell? (The author refers to work among the Native Americans and to “con-verting the heathen.”) Reread the closing line: “ . . . people who neither have any knowledge of God nor follow reason.” What part of this statement appears to be a stereotype? (Possible answer: One might be able to understand the people’s not knowing about God, for the missionaries believed that they were bringing that knowledge; but to say that the people could not reason seems biased.)

2. Practice the skill by following the steps on p. 558 as a class. Model each step as students answer the questions. (1. Native Americans 2. Possible answer: the whole race of the Indians 3. The author says that they are barbarous and vicious, that they have no virtue or honesty, that they are terrible sinners and cheaters, and that they cannot reason. 4. Possible answer: Without considering them as individuals, with indi-vidual personalities and an individual abil-ity to respond to the missionaries’ message, the author indicates that all of the Indians are corrupt and perhaps even unable to be reformed.)

Monitor Progress

Ask students to do the Apply the Skill activity. Then assign the Analysis Skill Worksheet. As students complete the

worksheet, circulate to make sure individ-uals are applying the skill steps effectively. Provide assistance as needed.

Teaching Resources, Unit 7, Analysis Skill Worksheet, p. 80

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558 Chapter 19 The Age of Exploration

Identify Stereotyping

English-Language ArtsReading 7.2.6 Assess the adequacy, accuracy, and appropriateness of the author’s evidence to support claims and assertions, noting instances of bias and stereotyping.

A stereotype is an assumption about an entire group of people, without regard to individual differences. Stereotypes often lead to bias and prejudice. When reading historical sources, it is important to be aware of stereotyping.

Learn the Skill Follow these steps to analyze primary sources.

1. Identify the topic. Start by reading through the passage to identify what it is about.

2. Look for words that speak of a group of people as if they are all the same. Terms such as the whole group or all of them or they are clues that individuals are being lumped together.

3. Look for emotionally charged adjectives and descriptions. Usually, the words will be negative ones.

4. Identify the stereotype that has been made.Identifying instances of stereotyping will help you assess historical sources.

Practice the Skill Use the passage above to answer the following questions.

1. Identify the topic. Which group of people is the passage about?

2. Look for words that speak of a group of people as if they are all the same. Give an example of a phrase in the passage that lumps the group of people together.

3. Look for emotionally charged adjectives and descriptions. What kind of nature does the author say the people have?

4. Identify the stereotype that has been made.In your own words, explain how the author stereotyped the group of people.

Apply the SkillSee page 561 of the Chapter Assessment.

“The whole race of the Indians, as far as I have been able to see, is very barbarous [cruel; primitive]. Most of the Indians are of vicious [mean or violent] nature, and are adverse to virtue. They have hardly any honesty, so firmly established are their habits of sin and cheating. We have hard work here, both in keeping the Christians up to the mark and in converting the heathen. You know very well what a hard business it is to teach people who neither have any knowledge of God nor follow reason. . . .”

—Saint Francis Xavier, from "Letter on the Missions"