Ch. 16 World Economy

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The World Economy
1400s-1700s
Ch. 16
AP World History
Silver
Vital to the World Economy
Spaniards took over silver mines
in Mexico and South America
(mainly Bolivia) by the mid-16th
century.
Spanish monarchy kept 1/5 of mined silver; used
to build armies and public buildings.
Most of silver used in trade; silver passed through
Spanish merchants and on to China and India.
Silver began replacing paper money in China and
during the Ming dynasty, some taxes had to be
paid in silver; gap between rich and poor Chinese
people increased due to taxes paid in silver.
Maritime Power
Constant contact between
Western and Eastern
known world prior to this
period.
Europeans still ignorant of
wider world
-Some had a fear of
exploration because they
believed the world was flat.
-Vikings had already
ventured to Greenland and
N. America by 10th century.
New Technology
During 15th century, Europeans:
- adapted Chinese explosives into
gunnery, making first guns and
cannons.
-designed/built new ships to carry
heavy armaments.
-used and improved compass and
map-making.
Thus, military power and advantage
grew and Europeans were easily
able to intimidate and gain power.
Rulers wanted to explore: excitement,
potential harm to the powerful Muslim world,
wealth.
Portugal
1434, began expeditions down African coast
(slaves & spices).
1498, Vasco da Gama’s fleet
found a route around African
tip, arriving in India.
-difficult to trade b/c of est.
Muslim traders; later used
violence to gain items for world trade.
Set up trade forts on African & Indian coasts.
1514, reached Indonesia (spices!) & China.
1542, reached Japan, launched missionary
efforts.
Spain
Also wanted to prove itself to Muslim world &
gain wealth.
1492: last Muslim fortress captured; Spain
sends Columbus for a Western route to India,
instead “discovers” a new world.
Later expedition by Amerigo Vespucci gave new
world its name.
Spain won papal approval to claim present-day
Latin America. Portugal won papal approval
over Brazil.
Ferdinand Magellan sailed westward in 1519,
across Pacific, reaching Indonesian
islands(1521); Spain claimed Philippines and
various Pacific islands.
Northern European Expeditions
Gained lead in exploration by late 16th cent.
France, England, and Holland strove to gain
land and spread Protestantism.
Easily explored with faster, lighter ships.
Mainly aimed for N. America because of Spain
and Portuguese dominance in south.
Driven by discovery of uncharted land, native
populations, and potential profit.
Expeditions from anywhere in Europe were
always life-risking.
France
1534, crossed
Atlantic and
claimed Canada.
17th cent, pressed
south to Great
Lakes and
Mississippi valley
regions.
Britain
Wanted to find a
NW passage to
spices in India,
accomplishing little
before 17th cent.
By 17th cent, gained
N. American east
coast colonies.
Holland
Dutch competed with Portuguese for SE
Asian ports; ousted Portuguese from
Indonesian islands by 17th cent.
Established settlements in S. Africa as relay
station for East Indies-bound ships.
Trading Companies
Companies given gov. monopolies on
trade in designated regions.
-not strictly supervised by gov.
-companies able to raise armies and
money; gained fortunes; acted like
independent govs. in specified regions.
Dutch East India Company ruled
Taiwan for some time.
British East India Company ruled parts
of India (18th cent.); had active role in
N. American fur trade.
Europe’s sea routes led to…
Columbian exchange: foods, diseases,
ppl.
New import-export
patterns
New overseas
empires
Columbian Exchange
16th and 17th cent, Europeans & Africans brought
diseases to Native Americans; over ½ of native
population died.
-Europeans able to repopulate new world with African
slaves & Europeans.
New World crops (corn, potatoes, etc) spread via W.
merchants; adoption of new crops triggered large pop.
increases around world; new staple crops.
Some Europeans feared new food b/c they believed it
spread the plague and it wasn’t mentioned in Bible.
Horses and cattle introduced to New World.
West’s Commercial Outreach
Europe did not completely take over Asian & African
territories, just established ports there.
Europe weaseled way in and dominated
international trade routes, increasing profits.
-EX. Battle of Lepanto (1571), Spanish fleet
defeated Ottoman empire navy in Mediterranean;
ended hope for Muslims to defeat European naval
power; Europe dominated Mediterranean trade.
17th cent: ports on w. coast of Africa, in India, in SE
Asian islands; Dutch port in Nagasaki.
-provided contacts and goods that Europeans would
not otherwise receive
*Europeans gained access without total control*
Imbalances
Spain first dominated World trade, lost control b/c lack
of bank system; England, France, Holland then
dominated world trade; profits brought wealth and
capital.
W. Europe traded manufactured goods (guns, cloth)
for raw materials (silver, sugar); enhanced
commercialism
Mercantilism: basic world trade policy; nations sell
exports as much as possible without importing goods
from outside of own empire.
-Tariffs(taxes) stimulated home-based manufacturing.
Dependents to core nations produced low-cost goods
(metals and crops) and human labor (slave trade) for
dominating nations.
International Inequality
Only a few people in European dominated regions
benefited from European trade/exploitation, not whole
region.
-African slave traders grew rich.
-Latin American regional merchants and farmers grew
rich from mines and food sale.
Many peasants stuck to subsistence farming, not
entering market economy.
Forced labor grew wherever
there was cheap production.
-African slaves, Native
Americans/mestizo enslavement, spice production slaves
in Dutch East Indies.
“World” Economy
Some countries and regions stayed out of world
trade system; i.e. China and Japan stayed
relatively isolated
India interested in World trade, selling goods for
silver and allowing coastal ports, but rulers more
focused on internal development.
Russia traded mainly with
nomads in central Asia, not
Western world trade.
Non-slave-trade Africa
untouched by world trade.
China
Avoided involvement in international trade on
another country’s terms.
Extensive gov. regulation to keep Europeans(with
Asian ports) in check
Kept traditional characteristics,
valuing old over new; did,
however, adopt European gunnery.
China was a strong exporter,
receiving much of New World
silver; avoided subservience to
European merchants; no need for
outside goods.
Japan
Open to Christian missions;
fascinated by W. gunnery
and shipping.
Guns used in feudal wars;
leaders worried this
western influence would
threaten samurai
dominance.
Still, made own gun
industry, then cut out most
European contact.
Travel in and out of Japan forbidden besides some
Chinese contacts and Dutch-Nagasaki port.
Expansionist
16th cent. world trade
dependencies: S. America, the
W. Indies, parts of N. America,
regions in w. Africa.
-by 17th cent, some of SE Asia
brought into dependencies via
W. trading companies.
17th cent, as Indian Mughal
Empire fell, British and French E.
India Companies moved in.
-Manufacturing in India declined as it became more
dependent on Europe (never completely dependent like
Latin America).
•E. Europe exported more grains (grown by serfs) to the
growing W. Europe cities.
Colonial Expansion
Europe had a network of overseas
colonies
Sugar became more readily available
around the world; it wasn’t just a highclass product anymore; prompted
dentistry by 18th cent.
The Americas
Euro guns, horses, weapons were
Francisco
advantageous and pop. losses
Pizarro,
created opportunities in colonies.
conquistador
Spanish expanded via violent and
treacherous adventurers;
launched expedition from Cuba
for conquest of Aztecs(Mexico);
1531, fought toward Inca
realm(Andes); continued to
spread south.
Colonies established by gold-seeking Europeans;
formal administrations on new lands later formed as
agricultural settlements grew.
French in Canada; Dutch and English on E. coast of N.
America; 17th cent, all three colonized W. Indian islands.
British and French
Religious refugees went to
English colonies; proprietors
received gov land grants.
French Canada(New France)
had high birth rates; Catholic
organization.
Seven Years War (b/w
England and France)
-Ended with Treaty of Paris(1763): France regained W.
Indian sugar islands & African posts. Britain took control
of Canada & MS basin.
•Dutch attached to Asian colonies; British and French
attached to West Indian holdings, N. America not as
profitable.
N. America
S. colonies: tobacco, sugar,
cotton; large estates based on: slave labor,
wealthy planter, weak formal govs.
Colonists had assemblies, gained political
experience; they read European
Enlightenment materials and philosophies
18th cent, American merchants traded with
China, so Britain tried to put more limits
(taxes) on this local economy and thus
encouraged rebellion.
Colonists displaced Native Americans, gained
vast stretches of territory; never tried to
combine cultures as those in Latin America
did(religion).
1700, African slaves well established
N. America & W. Europe
White N. American
settlers maintained
most features of Eurostyle families and
lifestyles; but, settlers
had larger families.
The independent
American government
(1776) used many W.
European theories and
ideas.
Africa and Asia
Europeans generally stuck to
small African ports, without
moving to interior.
-1652, Dutch Cape Colony
(S. Africa): supply station for
ships that became a Dutch
farming region; clashed with
the Africans (trying to
enslave).
Spain in the PI, won MANY
converts; Dutch company in
Indonesia & Taiwan;
beginning in 17th cent, French
and British fighting over
dominance in India.
India
British East India company
gained Calcutta and had strong
connections with British gov,
giving it more power; the
French had neither.
French interested in missionary
work; British more interested
in profits.
Both had Indian allies and
troops.
English lost Calcutta(1756) and
regained it, plus more territory;
French lost power in India;
Britain would continue its hold
over India.
Continuities
Slave labor continued to grow
European brutality in conquests over
civilizations
Religion and profits drove colonizers
Attempting to find shorter routes to India
(England, Spain, Portugal tried)
Various regions refused to be affected by
expanding world trade
Muslims continued trade in Africa.
Changes
“New” foods/crops spread world-wide
Introduction of animals to the New
world
Diseases changed demography of
Americas
The core nations flip-flopped and so did
their dependencies; as colonial holdings
grew, world economy grew.
Major Comparisons
British vs. French: French seemed more
focused on evangelizing non-believers
while the British were driven more by
profits. (EX. India)
Actual land possessions of the major
exploration countries (size and
location).
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