Period 4 (1450-1750) Aim : How did European companies facilitate new global circulation of goods and maintained established regional markets in Afro-Eurasia?. Do NOW : 1. What is Columbus discussing? 2. Who is it addressed to? 3. Why does he use this tone? EVIDENCE? - PowerPoint PPT Presentation
Period 4 (1450-1750) Aim : How did European companies facilitate new global circulation of goods and maintained established regional markets in Afro-Eurasia? • Do NOW : 1. What is Columbus discussing? 2. Who is it addressed to? 3. Why does he use this tone? EVIDENCE? • In reference to the transportation of gold from the island to Castile, that all of it should be taken on board the ship, both that belonging to your Highnesses and the property of every one else; that it should all be placed in one chest with two locks, with their keys, and that the master of the vessel keep one key and some person selected by the governor and treasurer the other; that there should come with the gold, for a testimony, a list of all that has been put into the said chest, properly marked, so that each owner may receive his own; and that, for the faithful performance of this
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Period 4 (1450-1750) Aim: How did European companies facilitate new global circulation of goods and maintained
established regional markets in Afro-Eurasia?
• Do NOW: 1. What is Columbus discussing? 2. Who is it addressed to? 3. Why does he use this tone? EVIDENCE?
• In reference to the transportation of gold from the island to Castile, that all of it should be taken on board the ship, both that belonging to your Highnesses and the property of every one else; that it should all be placed in one chest with two locks, with their keys, and that the master of the vessel keep one key and some person selected by the governor and treasurer the other; that there should come with the gold, for a testimony, a list of all that has been put into the said chest, properly marked, so that each owner may receive his own; and that, for the faithful performance of this duty, if any gold whatsoever is found outside of the said chest in any way, be it little or much, it shall be forfeited to your Highnesses.
The Impact of the Age of Exploration: Europe
Some governments granted royal charters to
European companies, giving them a monopoly on trade and even the
power to take over land in the name of the
crown.
Overseas colonies increased the wealth of European nations, the power of kings.
Some expeditions were paid for by citizens who formed
joint-stock companies- investors pooled resources
for common purpose (forerunner of modern
corporation), reduced risk.
They took silver from Spanish colonies in the Americas to purchase Asian goods for the Atlantic markets
British East India Company• Commonly associated with
trade in basic commodities, which included cotton, silk, indigo dye, salt, saltpetre, tea and opium WHY these items?
• The Company received a Royal Charter from Queen Elizabeth in 1600, making it the oldest among several similarly formed European East India Companies- Why were other countries involved? How does this differ from China’s trade?
Dutch East India Company
• It is often considered to have been the first multinational corporation in the world. The first company to issue stock.
• It was also arguably the first megacorporation, possessing quasi-governmental powers, including the ability to wage war, imprison and execute convicts, negotiate treaties, coin money, and establish colonies
• Dutch Verenigde Oostindische Compagnie (VOC) had military and naval forces of their own that dwarfed even the average European state's armed forces, and adequate funds to buy the best men and equipment, in effect making them a state within a state. BENEFITS? Drawbacks?
Cycle of Conquest & Colonization
Explorers Conquistadores
Mission
aries
PermanentSettlers
OfficialEuropeanColony!
Europe was greatly impacted by the
Age of ExplorationOverseas colonies
increased the wealth of European nations, the power of kings.
This was especially true in Spain where the influx of gold & silver turned Spain
into one of the wealthiest & most powerful nations in
Europe
King Philip II
The increase in trade led to the growth of capitalism, especially
in England & the Netherlands
Capitalism is a system in which merchants
trade & invest money in order to make a profit; Prices are determined by supply and demand
Citizens can invest money in companies like the British East India Company &
share in the profits
Mercantilism Nations developed an economic policy called
mercantilism based upon the idea that national power comes from a favorable balance of trade As a result, colonies are needed
to supply the mother country with cheap raw materials
Due to mercantilism, a “triangular trade” developed between Europe, their overseas colonies, & Africa
The Portuguese & Dutch seized trade ports in the Spice Islands & in India in order to gain exotic
goods like cotton & spicesEuropean merchants began to dominate
trade in China & Japan & converted many
people to Christianity
European companies took silver from
Spanish colonies in the Americas to purchase
Asian goods for the Atlantic markets.
Silver from the Americas• European merchants’ role in Asian trade was characterized mostly
by transporting goods from one Asian country to another market in Asia or the Indian Ocean region.
• Commercialization and the creation of a global economy were intimately connected to new global circulation of silver from the Americas
Spanish Galleon Trade Routes (Silver Ships) – Effect on Spain? Global Economy?
Conclusions
As a result of the Age of Exploration, European knowledge & influence of the world increased greatly
What were the social and economic effects of the global flow of silver?
