Age of ExplorationEconomic Issues

From Regional Networks to Global networks

Mercantilism• an economic theory that states that the world

only contained a fixed amount of wealth and that to increase a country’s wealth, one country had to take some wealth from another

either

Have a higher import – export ratio

Actual conquest of new lands and resources

combination of both

Favorable Balance of Trade

• Regulated commerce could produce a favorable balance of trade.

• In general, tariffs should be high on imported manufactured goods and low on imported raw material.

• Need capital and labor– Translates to silver and slaves in this era

Economics influenced events• Favorable balance of trade

– Having exports exceed imports

• The theory of mercantilism was a set of principles that dominated economic thought in the seventeenth century.

• According to mercantilists, the prosperity of a nation depended on a large supply of bullion, or gold and silver.

• To bring in gold and silver, nations tried to have a favorable balance of trade.

• In order to maintain a favorable balance of trade, the goods exported must be of greater value than those imported.

• The development of colonies and trading posts played an important role in mercantilism, since they were both sources of raw materials and markets for finished goods.

Mercantilism

Building of EmpiresWas this the rise of West?

• Islamic Empires– Ottoman (land and sea)– Safavid– Mughal

• Iberian Peninsula (Sea Empire)– Spain– Portugal

• East Asia– Ming dynasty (early attempts then regional control)

• 1644 Manchu (Jurchens) take over China– Japanese Tokugawa

• Late 1500s and 1600s– Economic growth of the Dutch– Rise of the French and English

Complex issues – Global context (CAC)

• Conceptual tools• Contingency

– Dependent on other developments. – Other that Developments that occur independently in the world and

could have taken other directions and therefore events and their occurance not inevitable or that they do not have to correlate

– Vast amounts of silver in Americas and labor force from Africa• Accident

– Events just happen to occur at the same time – sort of like a comet that occurred at the Battle of Hastings

– Also relates to where resources are located – some countries have their coal supply near a river

• Conjuncture combination of events that occur independently that then interact to create a unique historical moment– Independent events converge– Eventually come together

Because of connections of W. Europe and Asia

The “Columbian Exchange”

The “Columbian Exchange”

Squash Avocado Peppers Sweet Potatoes

Turkey Pumpkin Tobacco Quinine

Cocoa Pineapple

Cassava POTATO

Peanut TOMATO Vanilla MAIZE Syphilis

Olive COFFEE BEAN Banana Rice Onion Turnip Honeybee Barley

Grape Peach SUGAR CANE

Oats

Citrus Fruits Pear Wheat HORSE

Cattle Sheep Pigs Smallpox

Flu Typhus Measles Malaria

Diptheria Whooping Cough

Trinkets

Liquor

GUNS

Inter-related Systems late 1400s to early 1700s

• The goal of a the nation was to become self sufficient in order to be able to determine your own destiny– Beginning idea of nation-state

• The result of their actions was– Growth of empires

• Hegemony – dominance of one group over another– With or without force

» Either economic control, military control, cultural preferences such as religion

– Culture accepted as dominate (Early River Valleys, Sparta, Zhou, Medici, Saxons, Spanish – Portuguese in Americas, Russia and Balkan area between 1700 and fall of Soviet Union, British Victorians in Africa and South Asia, America post World War II)

• Needed new resources• Had to control the shipping and land trade routes

Bullionism (gold)• Bullionism was the belief that the economic health of

a nation could be measured by the amount of precious metal, gold, or silver, which it possessed.

• Bullionism dictated a favorable balance of trade. • Each nation tried to achieve economic self-sufficiency. • Those who founded new industries should be

rewarded by the state.

New Weapons TechnologyNew Weapons TechnologyNew Weapons TechnologyNew Weapons Technology

Economic Impact• Leads to a world economy which was created by

the Europeans during the late 16th century• Sea power was necessary to control foreign

markets. – A powerful merchant fleet would obviate the

necessity of using the ships of another nation and becoming dependent on foreign assistance.

– In addition, a fleet in being could add to a nation's prestige and military power.

• Established an international exchange of foods, diseases and manufactured products

Columbus’ Four VoyagesColumbus’ Four VoyagesColumbus’ Four VoyagesColumbus’ Four Voyages

Other Voyages of ExplorationOther Voyages of ExplorationOther Voyages of ExplorationOther Voyages of Exploration

European ExplorationEuropean ExplorationEuropean ExplorationEuropean Exploration

Mexico Surrenders to CortésMexico Surrenders to CortésMexico Surrenders to CortésMexico Surrenders to Cortés

Francisco Francisco PizarroPizarro

Francisco Francisco PizarroPizarro

The First Spanish Conquests:The First Spanish Conquests: The Incas The Incas

The First Spanish Conquests:The First Spanish Conquests: The Incas The Incas

AtahualpaAtahualpaAtahualpaAtahualpa

vsvs..

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The Treaty of Tordesillas, The Treaty of Tordesillas, 1494 & 1494 &

The Pope’s Line of The Pope’s Line of DemarcationDemarcation

The Treaty of Tordesillas, The Treaty of Tordesillas, 1494 & 1494 &

The Pope’s Line of The Pope’s Line of DemarcationDemarcation

Negative Impact of Europeans

• The colonization of the Americas by the Spanish drastically impacted the native civilizations

• Forced labor, starvation and especially disease took a toll on their lives

• Ravaged by smallpox measles and typhus• Hispaniola population of 250,000 1492 by 1538 only 500

survived• MexoAmerican population dropped from 25 million in 1519

to 1 million in 1630• Also changed were the social and political structures of the

peoples • They were replaced with European styles of governance

and religious systems and new languages using new schools and hospitals organized by the structure of the church organized by parish and missions

Trans-Atlantic Slave TradeTrans-Atlantic Slave TradeTrans-Atlantic Slave TradeTrans-Atlantic Slave Trade

African Diaspora

Slave Trade• Existed in Africa before the coming of the

Europeans.• Portuguese replaced European slaves with

Africans.– Sugar cane & sugar plantations.– First boatload of African slaves brought by the

Spanish in 1518.– 275,000 enslaved Africans exported

to other countries.

• Between 16th thru 19th century (400 years) about 10 million Africans shipped to the Americas.

Slave trade originated at the rise of the Islamic Empires by 900 CE

Atlantic:

1450-1860 11-12 million

Mediterranean:

700-1900 6-7 million

Indian Ocean (and Red Sea)

800-1900 2-3 million

Chronology and Numbers approximate

Impact on Africa• Hardest hit was Benin which was a creative and

brilliant society in the 16th century their population declined and they lost their faith in their gods and human sacrifice increased

• Taken first were the strongest young men and women• Political unity within tribes such as the Ibo and the

Ashanti remained but these were the tribes which contributed a large number of slaves, mostly by raiding other tribes

• Trade routes shifted to the coast and away from the subSaharan trade weakening the strong and influential Songhai Empire

• There was some spread of Christianity which later comes into conflict with Islam, religious wars which draw in many Africans

Slave ShipSlave ShipSlave ShipSlave Ship

Coffin position below deck during the Middle Passage

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New Colonial Rivals (slave trade)

New Colonial Rivals (slave trade)

Slave Trade

Zheng He’s

Zheng He440 feet longCompared to 75 feet long

Ming withdrew

• Concerned about new philosophies of the west

• Imports– New Agriculture

• Cotton, potatoes, maize

– The Mexican Dollar• Spanish silver pesos

– Eyeglasses

• Banned ship building and withdrew treasure expeditions

Triangle Trade

Middle Passage

Transition from one dominate family of rulers that inherited the position to political

ideologies and parliamentary processes

• First came centralization– As monarchs (kings, emperors, sultans, khans,

caliphs, Raja and whether theocratic or emerging parliamentary and anywhere in between) began to centralize their empires, they realized the need to be self-sufficient.

• Then came empires to maintain their position• As their territories grew they needed growing

systems to control them which included a methods to control the aristocracy (by birth and inheritance) and a new type of aristocracy

The Colonial Class SystemThe Colonial Class SystemThe Colonial Class SystemThe Colonial Class System

PeninsularPeninsulareses

PeninsularPeninsulareses CreolesCreolesCreolesCreoles

MestizoMestizoss

MestizoMestizoss

MulattMulattosos

MulattMulattosos

Native IndiansNative IndiansNative IndiansNative Indians Black SlavesBlack SlavesBlack SlavesBlack Slaves

Treasuresfrom the Americas!

Treasuresfrom the Americas!

Fleets• Sea power was necessary to control

foreign markets.

• A powerful merchant fleet would obviate the necessity of using the ships of another nation and becoming dependent on foreign assistance.

• In addition, a fleet in being could add to a nation's prestige and military power.

Effects and Results of Methods of trade• Sea Empire vs. Land Empires• Ships and navigation• Protection of high seas• Port development• New uses of gunpowder• Empires that are able to adhere to these principles were able

to dominate• England• Dutch had economic empire• Spanish & Portuguese (Iberian Empires)• Ottoman

– Didn’t have the wood for ships so naval power was issue• Ming

– Hai jin edict halts the production of ships– Concern about outside contact and the push of the Mongolians in

north

Dutch Economic Empire

Northern RenaissanceNorthern RenaissanceSampling Officials of the Drapers GuildSampling Officials of the Drapers Guild – Rembrandt - 1662 – Rembrandt - 1662

Dutch East India Company, Dutch East India Company, 16021602

Dutch Ship in NagasakiDutch Ship in NagasakiLate 18cLate 18c

Scientific RevolutionScientific Revolution

René DescartesRené Descartes

The right environment -The right environment -

French philosopher but lived French philosopher but lived in Leiden in Leiden

from 1628 to 1649from 1628 to 1649..

Anton van Anton van Leeuwenhoek: Leeuwenhoek:

The Microscope & the The Microscope & the Discovery of Micro-Discovery of Micro-

OrganismsOrganisms

The Spanish Netherlands:The Spanish Netherlands:Union of Utrecht, 1579Union of Utrecht, 1579

The United Provinces still recognized The United Provinces still recognized Spanish rule, but, in 1581, they declared Spanish rule, but, in 1581, they declared

their independence.their independence.

Political and Economic Conflicts in Europe carry to rest of world

• Hapsburg conflict of succession of the Holy Roman Empire with the Bourbon claims known as the War of Succession

• 7 Years war (1754-1763)– Battle of Plassey fought in India in 1757 as the Nawab were supported

by the French• Sir Robert Clive defeats the forces resulting in the French being pushed from

India to Southeast Asia• As Bengal became under the control of the British East India Trading

company– this becomes their first step in the control of South Asia and its resources eventually becoming known as the “jewel in the crown” of the British Empire

• French and Indian War in the Americas• British get control of Canada• Territory west of the Mississippi under French control was ceded to

the British• Spain acquired Louisiana from France as a result of their support of

France during the war