Eais Gr. 10 History Quiz 16.2

Explanation
Europeans believed that the best way to improve trade was to find sea routes to the East. This is because during the time period in question, land routes to the East were difficult and dangerous, often controlled by hostile empires. By finding sea routes, Europeans could bypass these obstacles and establish direct trade with the rich and lucrative markets of the East, leading to increased profits and economic growth.

Explanation
The invention of the compass greatly improved navigation by providing a reliable way to determine direction. Prior to its invention, sailors and explorers relied on less accurate methods such as celestial navigation or dead reckoning. With the compass, sailors were able to accurately determine their heading and navigate more efficiently. This invention revolutionized travel and exploration, making it easier to navigate across vast oceans and discover new lands.

Explanation
The need to solidify business practices led to the Commercial Revolution. This period of economic expansion and growth in Europe, starting in the 16th century, saw the emergence of new trading practices, the establishment of global trade networks, and the development of capitalism. The Commercial Revolution was driven by factors such as the discovery of new trade routes, advancements in technology, and the rise of merchant capitalism. It brought significant changes to the economic landscape, including the growth of cities, the establishment of banks and stock exchanges, and the development of a global market economy.

Explanation
Italian cities were among the first to produce coins with fixed values. This means that the value of the coins was predetermined and did not change. The use of fixed values in coins allowed for easier and more standardized trade within the cities and helped to establish a stable economy.

Explanation
In a joint stock or joint-stock company, investors who bought shares in the company became co-owners. This means that multiple individuals or entities collectively owned the company by holding shares of its stock. The term "joint stock" or "joint-stock" refers to the shared ownership structure of the company, where ownership is divided among shareholders who have invested in the company's stock.

Explanation
Mercantilism is an economic theory that emerged during the 16th to 18th centuries. It advocated for government intervention in the economy to promote and maximize a nation's wealth. According to mercantilism, a country's wealth was measured by the accumulation of gold and silver through a favorable balance of trade. Governments were encouraged to implement policies such as protectionism, subsidies, and colonization to boost exports, limit imports, and accumulate precious metals. This theory was a response to the increased wealth of nations and aimed to ensure economic prosperity and power for the state.

Explanation
A favorable balance of trade indicates that a country is exporting more goods and services than it is importing. This means that the country is selling more products to other nations and earning more revenue from those sales. As a result, the country's economy is benefiting from the surplus in trade, leading to increased economic growth and stability.

Explanation
A country could try to maintain a favorable balance of trade by putting a tariff, or tax, on import goods. This means that the country imposes a tax on imported goods, making them more expensive for consumers. By doing so, the country aims to discourage imports and promote domestic production, which can lead to a favorable balance of trade by reducing imports and increasing exports. Tariffs can also be used as a tool to protect domestic industries from foreign competition and stimulate economic growth.

Explanation
Governments could encourage exports by giving out subsidies or subsidy to help residents start businesses. Subsidies are financial assistance provided by the government to businesses or individuals to support their activities. By offering subsidies, the government can lower the costs of starting a business, making it more attractive for residents to engage in export activities. This can stimulate economic growth and increase the country's exports, benefiting both the government and the residents.

Explanation
Colonies provided individuals with an opportunity to flee from densely populated areas, destitution, and religious persecution.