What Effect Did Law's Actions Have On France
1. What happened to the shares in the Mississippi Company? How did people react?
Law overtold the wealth of Louisiana which made people want to go buy stock from the Mississippi Company. Which led to The French Government telling the people that they committed a fraud, and that any investors, they have they couldn't be payed.
2. What effect did Law’s actions have on France?
France’s financial development was brought to the ground from the downfall and brought the people of France and the markets off the paper money.
3. Why was gold and silver important?
The reason gold and silver was important was because it always had a set price that people could rely on.
4. What did Rothschild do with the gold that he had after Napoleon was defeated?
Rothschild
put a large amount of gold into the British Bond market under the idea that the prices would go higher and higher making more money for him.
5. What was the financial turning point of the American Civil War? the financial turning point of the Civil War happened when the north captured the New Orleans port which was critical in the Southerners victory because it held the shipping route for cotton which supported their finance for the war.
6. What mistakes did landowners make in Europe? the landowners in Europe made the mistake of taking out credit and using their land as warranty even though they had a hard Time making the money to pay off the loans and interest.
7. What is the key problem with overseas investment?
The key problem with overseas investments is that it’s hard for an investor in London or New York to see what a foreign government or company are up to if the foreign borrower starts to fall in debt then you suffered a huge loss.
8. Why do you think people have taken the risk and invested in overseas companies? What are the pros and cons of doing this?
I believe the reason why people take the risk and invested in overseas companies is because of the high benefits of investing in them. The pros are that you can make quite a bit of money and expand relations with other countries that’s called globalization. The Cons of overseas investments is the chance of the investment going the other way leading to you losing a lot of money because of the risk of things changing.
Law overtold the wealth of Louisiana which made people want to go buy stock from the Mississippi Company. Which led to The French Government telling the people that they committed a fraud, and that any investors, they have they couldn't be payed.
2. What effect did Law’s actions have on France?
France’s financial development was brought to the ground from the downfall and brought the people of France and the markets off the paper money.
3. Why was gold and silver important?
The reason gold and silver was important was because it always had a set price that people could rely on.
4. What did Rothschild do with the gold that he had after Napoleon was defeated?
Rothschild
put a large amount of gold into the British Bond market under the idea that the prices would go higher and higher making more money for him.
5. What was the financial turning point of the American Civil War? the financial turning point of the Civil War happened when the north captured the New Orleans port which was critical in the Southerners victory because it held the shipping route for cotton which supported their finance for the war.
6. What mistakes did landowners make in Europe? the landowners in Europe made the mistake of taking out credit and using their land as warranty even though they had a hard Time making the money to pay off the loans and interest.
7. What is the key problem with overseas investment?
The key problem with overseas investments is that it’s hard for an investor in London or New York to see what a foreign government or company are up to if the foreign borrower starts to fall in debt then you suffered a huge loss.
8. Why do you think people have taken the risk and invested in overseas companies? What are the pros and cons of doing this?
I believe the reason why people take the risk and invested in overseas companies is because of the high benefits of investing in them. The pros are that you can make quite a bit of money and expand relations with other countries that’s called globalization. The Cons of overseas investments is the chance of the investment going the other way leading to you losing a lot of money because of the risk of things changing.