Creation, Expansion, and Interaction of Economic Systems
Europe
8000 BC – 600
BCE Neolithic
Revolution
----------------600 BCE to 600
CE Ancient
Empires
600 – 1450
Regional
Civilizations
1450 – 1750
First Global Age
1750 – 1914
Age of
Imperialism
1914 – Present
World at War
Barter System (early)
Greeks / Romans get coins
from Persians
Phoenicians / Greeks –
coastal trade
Rome – extensive roads
(133 BC - 476 AD)
Dark Ages
- Barter, Manorialism
(self-contained)
High Middle Ages / guilds
(1300s) growth of trade;
Commercial Revolution
- Banking / Insurance
Portuguese begin first
global age (15th Century);
gain control of Spice trade
Atlantic slave trade begins
in 1500s as rise in demand
of sugar / cocoa in Europe
Mercantilism dominates in
Americas
Capitalism dominates;
laissez faire
James Watt’s steam engine
(1769) leads to British
dominance in textiles
Building of railroads,
canals, ports, steam ships
facilitate global trade
German steel industry 1890s
Marshall Plan given to
Western Europe, but Soviets
decline for Eastern Europe
(1948)
European Economic
Community (1957)
European Union / EURO
(1990s) – EU equals market
size of NAFTA
European socialism
East Asia (China,
Japan, Korea)
South Asia (India)
and SE Asia
(Vietnam, etc.)
SW Asia
(Middle East)
Africa
Western
Hemisphere
Barter system (early)
Part of the Silk Road
network
Coastal trade as far as
Mesopotamia
Barter system (early)
Lydians invent coins /
Persians standardize their
use (≈500 BCE)
Part of the Silk Road
network
Phoenicians - coastal trade
Barter system (early)
Camels introduced
(≈100 CE)
Nile River trade
Mediterranean trade
Pax Mongolia (Mongol
peace facilitates trade in
Asia)
Silk Road continues
Indian Ocean Spice Trade
Srivijaya (Indonesia) is
major trade center
Abbasid Dynasty – trade
facilitated among Muslim
states in Middle East, India,
North Africa, West Africa,
East Africa, and SE Asia
Gold-Salt trade in
Ghana and Mali
Indian Ocean Spice
Trade with East Africa
City States
Cotton, leather, animal
skins, gold, slaves
Decline of Silk Road
Silver Trade – Spanish
bring silver from
Americas to Philippines
for Chinese goods
China, Korea, Japan
allow only limited trade
with Europe
Portuguese seize Goa in
India (1510) and Malacca
(1511) – beginning of
European control of
Spice trade
Dutch seize Malacca
1641
Control of spice trade with
Europe brings Ottomans to
apex in 1500s; great
bazaars filled with
merchants and trade, but
decline begins in 1600s
Decline of gold-salt
trade with introduction
of Europeans
Atlantic triangle trade
(sugar for slaves),
1500s to 1800s
China becomes sphere of
influence of European
powers
Japanese zaibatsu
industrial families
US Open Door Policy
with China (1898)
All countries (except
Siam) becomes colonies /
protectorates of European
powers
Europeans dominate sea
trade in region
British use indentured
servants to replace slaves
Suez Canal opened (1869);
Egypt becomes British
protectorate
Persia becomes sphere of
influence of Britain; oil
discovered in 1908
Suez Canal opened
trade between India and
Europe
All countries (except
Liberia and Ethiopia)
become colonies /
protectorates – profits
returned to Europe
Development of textile,
rail, oil, steel industries
Peonage / share-cropping
replaces Indian / slave
labor; indentured servants
used in sugar colonies
“Dollar Diplomacy”
(1898-1933)
Marshall Plan given to
Japan (1948)
Japan becomes dominant
economic power (1950s)
Asian Tigers (Hong
Kong, Taiwan, S. Korea)
China turns to capitalism
(1980s) – 2nd wealthiest
nation behind US (2010)
APEC – 18 nation forum
Ghandi leads textile
boycott of British goods
in 1920s
Singapore becomes one
of the Asia Tigers
Vietnam becomes
capitalist in 1990s
India becomes leader in
technology (2000s)
Oil discovered in Saudi
Arabia (1938)
Modernization under
Atatürk (1923-38)
OPEC embargo of US
(1973)
Modernization under Shah
of Iran (before Iranian Rev)
Arabs invest oil profits in
banking and global trade
Turkey asks to join EU
Imperial period ends,
1950s-1980
Western countries offer
aid / trade in postcolonial era
Gold, diamonds, oil
attract investment, but
Corruption, debt and
socialist governments
limit growth
“Dollar Diplomacy”
(1898-1933)
Bretton Woods
Conference creates
World Bank / IMF 1944
US controls 50% of
world trade in 1945; only
15% in 2010
NAFTA (1993)
Growing welfare state
Barter system (early)
China – silk road
China – invention of
paper / paper money
(≈100 AD)
Trade routes along Ohio
and Mississippi rivers
Trade by Mayas in MesoAmerica
Lack of wheeled vehicles
(animals) limits travel /
trade
Trade by Aztecs in MesoAmerica more advanced
than Incans (geography)
Trade along Ohio and
Mississippi rivers
Incans do not allow trade
on their road system
Spain / Portugal colonies
Latin America; silver sent
to China and Spain
Atlantic triangle trade
(sugar for slaves), 1500s
to 1800s
Slavery used for sugar,
tobacco plantations