| In the fourteenth and fifteenth centuries, the | | | | World. The Atlantic circuit also stimulated African |
| Spanish and the Portuguese tried to control the | | | | slave trade. The Atlantic circuit kept goods |
| overseas trade of the colonies using monopolies. | | | | moving from areas where they were abundant |
| This control became very expensive for the | | | | and cheap to areas where they were scarce and |
| governments and was incredibly inefficient. The | | | | valuable. Some colonies participated in a "Triangular |
| Atlantic trading system became more efficient | | | | Trade" while others traded two ways. The most |
| and profitable with capitalism. Capitalism is the | | | | common goods were slaves from Africa, |
| economic system of large financial institutions such | | | | Tobacco and liquor from Brazil, Canadian furs, and |
| as banks, stock exchanges, and investment | | | | guns and precious metals from Europe. Really the |
| companies. This was only able to happen with the | | | | only goods that were abundant in Africa were the |
| development of private enterprises. Capitalism | | | | slaves which were commonly prisoners of war. |
| was first developed in Europe and only expanded | | | | After about 150 years, the number of slaves that |
| to the colonies of the New World when economic | | | | were shipped out of Africa rose from nearly |
| growth slowed in Europe. | | | | 800,000 to more than 7.5 million. |
| Capitalism in these times was reinforced by | | | | Economic life in Africa was affected greatly by |
| mercantilism. Mercantilism was the policies of | | | | the increase in demand for slaves as the Atlantic |
| European governments designed to promote | | | | trade system was emerging. As the demand for |
| overseas trade between the countries and their | | | | slaves rose, the price to purchase them in Africa |
| colonies. These policies were created and put into | | | | rose as well. In some places, the price for a slave |
| effect using armed forces if needed to acquire | | | | tripled or nearly quadrupled. The African |
| precious metals from the colonies and requiring | | | | merchants were very demanding in what goods |
| the colonies to only trade with their own | | | | were acceptable in trading for slaves, and |
| countries. These policies encouraged private | | | | because the slave dealers in Africa had the |
| investors to buy shares in government chartered | | | | advantage of "greed vs. need" (the foreigners |
| companies. Fierce competitions arose between | | | | needed the slaves more than the African |
| each nations own people from the high tariffs and | | | | merchants needed any of their goods), they set |
| strict restrictions to foreigners. | | | | the prices high. The slaves were the biggest |
| As the Atlantic system developed, the increased | | | | product of Africa along with the gold, ivory, and |
| demand for sugar in Europe was associated with | | | | forestry products that were also traded. |
| increased slave trade from Africa to the New | | | | |