MODERN ERA
INTERACTIONS:
1750 - 1914
THEMES

Modernization
• Reform, industrialization, progress minus Westernization

Westernization
• The west as the cultural, economic, political model

Democratization
• Increasing franchise, increasing governmental voice

Industrialization, Mechanization
• Machines, technology replace human, animal muscle
• Mass production of items, decreasing prices

Commercialism, Consumerism
• Capitalism, profit, buying replace tradition, command in economics

Disruptions, Conflict, War
• Change marks all societies leading to conflict, war

Population Movements
• Urbanization, Immigration, Migration

Western Global Hegemony
• It is the West and all of the Rest

Globalization or Diversity
• Global Unity vs. Regional Autonomy; Think Globally, Act Locally
MODERN ERA
INTERACTIONS:
WARS & CONFLICT
1750 - 1914
THE FIRST “WORLD” WARS

1750 - 1765
•
War of Austrian Succession and Rise of Prussia



•
Colonial Wars



France, Spain, England, Portugal, Dutch, Russia, Sweden in wars
Rise of Prussia as a great power, England as a super power
Showed balance of power doctrine at its fullest
Battles fought around the world
•
•
•
Colonies changed hands, colonials effected
English, French contest for North America
France lost influence in North America, Caribbean, India
•
•
•
•
•
British navy rules seas unopposed
Acquires former French North American colonies
Acquires preeminent influence in India
Acquires right to supply slaves to Spanish Americas
Spain, Portugal, Dutch no longer great powers
England emerges as world’s super power
American Revolution 1776 – 1783 and the Wider World Impact
•
•
•
British colonists revolt, inspired by Enlightenment
American ships ranged seas attacking English
Dutch, French, Spanish support colonial efforts


•
•
•
•
•
Dispatch aid, ships, troops to fight British in colonies, on seas
Spain invades English colonies to support colonists
Russians, Prussian, Swedes pledge an armed neutrality against UK
Treaty of Ghent ends war, gives Americans independence
Canada begins to rise as British loyalists immigrate to area
Led to bankruptcy of France and French Revolution
Great impact, influence on Latin Americans, European reformers
WAR OF
AMERICAN
INDEPENDENCE
THE FRENCH & NAPOLEON



An Era of Global Conflict from 1792 to 1814
French Revolution as Interaction
•
French revolutionary success sparked interest
throughout Europe, Americas
•
Many revolutionary regimes set up by French armies
in Italy, Germany
•
Haiti rebels during French Revolution
•
Spanish American colonies achieve independence
Napoleon Bonaparte (1769-1821)
•
Brilliant military leader; upset the Balance of Power
•
Became general in royal army at 24
•
Supported the revolution; defended the Directory
•
His invasion of Egypt was defeated by British army
•
Overthrew Directory; named himself consul for life
Napoleon's empire
•
•



1804, proclaimed himself emperor
Dominated the European continent

Annexed lands in Italy, Netherlands, Germany,
Spain; controlled other thrones

Defeated Austria and Prussia, Occupied Spain and
Portugal, allied with Scandinavia
•
Perennial Enemy: Great Britain who controlled the
high seas
•
Disastrous invasions of Spain, Russia in 1812
destroyed Grand Army
The fall of Napoleon
•
Forced by coalition of enemies to abdicate in 1814,
exiled on Elba
•
Escaped, returned to France, raised army
•
Defeated by British in 1815 at Waterloo, exiled to St.
Helena
Collapse of much of Dutch, Spanish, Portuguese, French
empires
Great Britain became literally the only surviving major
colonial power
EUROPE 1812 & 1815
RUSSIAN EXPANSION

Nineteenth-century Russia
• Collapse of Napoleon left Russia as great power
 Russia dominates Eastern Europe (saved both
Prussia, Austria)
 Russia increased presence in Central Europe,
Northern Europe
 Russia wants to push into Ottoman SE Europe, SW
Asia
 Expands into Central Asia, Pacific
• Autocracy, Orthodoxy, Conservatism
 Official government policy to uphold conservatism
 Pre-destined Russia to oppose revolution, change
everywhere
• Rise of Pan-Slavic Nationalism
 Sought to control all Orthodox, Slavs
 Brought Russia into conflict with Ottoman Empire,
Austria in Balkans
 Also wanted access to Mediterranean Sea
 Hoped to seize control of Constantinople
Conflicts


War against the Ottoman Empire
• Numerous wars to acquire Turkish lands in SE
Europe, Caucasus
• Supported rise of Christian Balkan states under
Russian influence
• Crimean War 1853 - 1856
 France, Great Britain, Sardinia supported
Ottomans
 Crushing defeat; forced tsars to modernize
army, industry
Russo-Japanese War 1904-1905
• Russian expansion into China, Korea met Japan
• Japanese attack Russia without warning
• Defeat two Russian fleets, armies
• First defeat of a European by an Asian power
• Japan emerges as a world military power
RUSSIAN EMPIRE
THE SICK OLD MAN OF EUROPE

The issue of Ottoman State called the Eastern Question
•
•

A central concern of European diplomacy from 1800 to 1914
At issue was whether to preserve or partition Ottoman Empire
By 1800s, Ottoman Empire a dying state
• Central government
 Horribly corrupt, unable to reform, unviable
 Central authority breaks down and provinces begin
to rebel, break off
• Multinational state
 Greeks, Slavs, Albanians, Rumanians, Jews, Arabs,
Kurds, Armenians
 Conflicting traditions demanding autonomy
• Nationalism affects some subject peoples
 Mehmet Ali of Albania seeks independence
 Muhammad Ali of Egypt seeks independence
 Greek Rebellion in 1820 achieves independence
 Serbs, Bulgars, Rumanians, Albanians follow in late
19th century
Russians, Austrians prey on
Ottoman Territory

• Russians constantly looking to take over territory
• Austrians, Germans, French, English oppose Russian
designs
• French, English interested in markets, protecting Suez
Canal
Balkan Wars and the Ottoman Empire
• Congress of Berlin 1878
 Territory lost to Austria, Russia
 Serbia, Montenegro, Rumania, Bulgaria declared
independent
• Westerners intervene to protect Christians, economic
interests
• Often Russia was the loser and it bred Russian
resentment
• Balkan Wars led to a Russo-France alliance and the
Austro-German alliance
• England very troubled by late period German interest in
Ottoman Empire
• World War I was often called the last of the Balkan
Wars
THE
DECLINE
AND
PARTITION
OF THE
OTTOMAN
EMPIRE
EGYPT & THE WORLD

Napoleon’s Invasion of (Egypt) Ottoman Empire
• French Revolution and ideas influence Ottoman
Europeans
 Napoleon invaded Egypt, made radical changes
while in possession
 Introduced westernization, nationalism into
Egypt
• Destroyed Mameluk army without serious loss
 Showed the weakness, outdated nature of the
Muslim institutions
 English halt invasion and restore Turkish control
of Egypt
Muhammad Ali emerges as
ruler of Egypt after Napoleon
• Began process to modernize Egyptian army
 Hired European officers, adopted European
tactics
 Invaded Syria; builds modern fleet to invade
Greece, Turkey
• Modernizes economy to support military
 Increased production of cash crops for export:
cotton, hemp, indigo
 Improved harbors, irrigation, increased
revenues
 Reform frustrated by worried Europeans,
traditional Muslims
 Europeans destroy navy at Battle of Navarino
Khedives and European
Intervention
• Successors to Muhammad Ali
ruled Egypt, Sudan until 1956
• Egypt: single export crop
economy (cotton): vulnerable
to fluctuations
• Khedives unable to balance
expenses, borrowed heavily
from Europeans; in debt
The Suez Canal

• French build canal connecting Mediterranean, Red
Sea (1869); controlled Egyptian debt
• Canal becomes critical to British empire, route to
Asia; purchased Khedive’s stock
• British, French intervened militarily in 1882 when
Khedive could not pay debts
Khedive calls in British troops to protect him from
army revolt
• British intervened, ruled Egypt through puppets,
the Khedive
• British officers controlled Egypt’s finance, foreign
affairs; protect Canal
AMERICAN CIVIL WAR

War not just an American domestic conflict
• France, UK nearly intervened for South
 Both dependent on Southern cotton
 Both provided aid to Southern blockade runners
 France and Mexico 1863 - 1867
• Revolution ousted Santa Anna; Juarez new leader
• Mexico owed Europeans money
• Europeans occupy Veracruz, ignored Monroe
Doctrine
• France set up a puppet regime under Austrian
emperor
Austria, Prussia, Russia supported
North


Saw Southern secession as revolt against
legitimacy
• Poland 1863: Three nations suppressed
rebellion
• Three nations warned France, UK not to get
involved
• Russian fleets anchored in Northern ports
• US bought Alaska in 1867 to repay Russia
for support
Prussia observed Union military
• Learned from Northern art of war, rebuilt
army
• Increased use of railroads as instrument of
war
Emancipation Proclamation,
Gettysburg Address
Had world impact
 Reminded French, English that North not South
represented democracy
 Came at same time as the Russian
emancipation of their serfs
• Union’s Industry and Agriculture productivity
increased
 Northern industry boomed; after war turned to
exporting finished goods
 Northern agriculture mechanized to support
war; increased productivity, exports
Egypt and India developed
• Cotton production increased to offset loss of
American cotton
• UK and France increased interests in Egypt, India
Brazil became last slave holding regime in Americas
after 1865



MEXICO IN MODERN ERA:
INSTABILITY AND FOREIGN INTERVENTION



Mexican Republic under Santa Anna
•
•
•
•
Until his death dominated Mexico
Saw himself as a Latin Napoleon
Constantly in debt to foreigners
Revolt of Texas led to conflict with US
•
•
•
Mexico lost 1/3 of its territory
Treaty of Guadalupe Hidalgo
US expanded to Pacific and annexed Texas
•
Benito Juarez
Mexican American War 1846 – 1848
The French Intervention



•
Conservatives turned to French for support




Liberal Indian President of Mexico
He started a liberal revolt
La Reforma which was powerful
French troops land
French install an Austrian emperor on throne
Backed emperor with French troops, French money
• US demanded French withdrawal in 1867
• Supply insurgents with arms; Juaristas win
Diaz Era Dictatorship to 1910
• Encouraged foreign investors
• Built rails, telegraphs; developed mines, plantations
• Country largely became property of American businesses
• Mexican oligarchy and foreign investors got wealthy
• Average Mexican standard of living declined; Indians exploited
OPIUM WARS

1795 Maccauley Mission and After
• British send diplomatic, trade
delegation to China
 Chinese tell British they are not
interested in trade
 China made mistake of
underestimating Europeans
• Forced British, Europeans to trade
through Canton
 Chinese exported silks, porcelains,
teas for silver
 Chinese refused to trade for
manufactures
Opium trade
• A serious threat to Qing dynasty by 19th century
• Cohong system restricted foreign merchants to
Canton
 China had much to offer, but little demand for
European products
 East India Company cultivated opium to trade
for Chinese goods
• British found that Chinese would trade for opium
 1810: 4500 chests weighing 133 pounds yearly
 By 1839, 40,000 chests traded yearly
 Opium draining revenue, destroying economy,
society
 By 1838, 1% of 400 million Chinese were
addicted
The Opium War (1839-1842)


• Commissioner Lin Zexu directed to stop trade
• British merchants refused
• Lin confiscated, destroyed 20,000 chests of opium
British reaction
• British retaliated, easily crushed Chinese forces,
destroyed Grand Canal
• British navy destroyed Chinese navy with steam
gunboats
• British army invades and emperor sues for peace
• 2nd Opium war erupts in 1850s which the British
won
• British begin using Hong Kong and five other ports
2nd Opium War in 1860s: France, UK crush China
CHINA:
UNEQUAL TREATIES

Unequal treaties forced trade concessions from Qing
dynasty
• Treaty of Nanjing, 1842
 Britain gained right to opium trade
 Obtained most-favored-nation status
 Hong Kong ceded to Great Britain
• Called unequal treaties
 Made with western countries and Japan
 Extraterritoriality
• Foreigners not subject to Chinese laws
• Criminal acts tried in Western courts
• Chinese crimes against westerners tried in
western courts
 By 1900, China lost control of economy to
foreigners
• Foreigners invest in China, control industry
• Ninety ports open to foreign powers
• Foreigners issued own stamps, had own post
Spheres of influence eroded
Chinese power
• Foreign powers seized Chinese tribute states
 Vietnam (France)
 Burma (United Kingdom)
 Korea, Taiwan (Japan)
• Effective partition of China by 1898
 China carved into spheres of economic influence
• France: Southern China
• UK: Canton area, Shantung area, Yangzte River,
Tibet
• Russia: Manchuria, Sinkjiang
• Japan: Amoy area across from Taiwan, Southern
Manchuria
 Chinese government ineffective
• Foreign merchants, missionaries free to run about
country
• Foreign legations (embassies) control many cities
• Western, Japanese ships sail up, down rivers without
interruption
CHINA & CONCESSIONS
MODERN ERA
INTERACTIONS:
IMPERIALISM
1750 - 1914
IMPERIALISM

•
Motives of imperialism
Modern imperialism


•
Two types of modern colonialism

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•
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Strategic purpose: harbors, supply stations
Overseas expansion used to defuse internal tensions
Cultural justifications of imperialism


Christian missionaries sought converts in Africa and Asia
"Civilizing mission“/"white man's burden“ justified expansion
Tools of empire
Transportation technologies supported imperialism


•
Steam-powered gunboats reached inland waters of Africa and Asia
Railroads organized local economies to serve imperial power
Western military technologies increasingly powerful


•
Firearms: from muskets to rifles to machines guns
In Battle of Omdurman 1898, British troops killed eleven thousand Sudanese in
five hours
Communication technologies linked imperial lands with colonies



European merchants made personal fortunes
Expansion to obtain raw materials
Colonies were potential markets for products
Political motives

•
Colonies ruled and populated by migrants
Colonies controlled without significant settlement
Economic motives of imperialism


Refers to domination of industrialized countries over subject lands
Domination achieved by trade, investment, business activities
Oceangoing steamships cut travel time from Britain to India to weeks
Telegraph invented in 1830s, global reach by 1900
Difference between colonialism and imperialism
EMPIRE IN ASIA

The British empire in India
• Company rule under the English East India Company
 EIC took advantage of Mughal decline in India, began
conquest of India in 1750s
 Built trading cities and forts at Calcutta, Madras, Bombay
 Ruled with small British force, Indian troops called sepoys
 Sepoy Rebellion, 1857: attacks on British led to reprisals
• British imperial rule replaced the EIC, 1858
 British viceroy and high-level British civil service ruled
India
 British appointed viceroy, ran all domestic, foreign policy
 Indians held low-level bureaucratic positions
• Economic restructuring of India, Ceylon (Sri Lanka)
 Introduction of commercial crops: tea, coffee, opium
 Built railroads, telegraph lines, canals, harbors, irrigation
• Did not interfere with Indian culture, religion
 Established English-style schools for Indian elites
 Outlawed Indian customs considered offensive, (sati)
Imperialism in central Asia
and southeast Asia
• "Great Game" refers to competition between Britain,
Russia in central Asia
 By 1860s Russian expansion reached northern
frontiers of British India
 Russian and British explorers mapped, scouted, but
never colonized Afghanistan
 Russian dominance of central Asia lasted until 1991
• Dutch East India Company held tight control of
Indonesia (Dutch East India)
• British colonies in southeast Asia
 Established colonial authority in Burma, 1880s
 Port of Singapore founded 1824; was base for
conquest of Malaya, 1870s
• French Indochina created, 1859-1893
 Consisted of Vietnam, Cambodia, Laos--former
tribute states of Qing dynasty
 French encouraged conversion to Christianity,
established western-style schools
• Thailand left in place as buffer between Burma and
Indochina
IMPERIALISM IN ASIA
SCRAMBLE FOR AFRICA

•
•
•
•
•
1875 and 1900
European powers seized almost the
entire continent
Early explorers charted the waters,
gathered information on resources
Missionaries like David Livingstone
set up mission posts
Henry Stanley sent by Leopold II of
Belgium to create colony in Congo,
1870s
To protect their investments and
Suez Canal, Britain occupied Egypt,
1882
South Africa
•
•
•
•
•
•
•
Settled first by Dutch farmers (Afrikaners) in
seventeenth century
By 1800 was a European settler colony with
enslaved black African population
British seized Cape Colony in early nineteenth
century, abolished slavery in 1833
British-Dutch tensions led to Great Trek of
Afrikaners inland to claim new lands
Mid-19TH century, they established Orange Free
State in 1854, Transvaal in 1860
Discovery of gold and diamonds in Afrikaner
lands; influx of British settlers
Boer War, 1899-1902: British defeated
Afrikaners, Union of South Africa
The Berlin Conference, 18841885
•
•
•

•
•
•
European powers set rules for carving Africa into colonies,
Africans not invited
Occupation, supported by European armies, established
colonial rule in Africa
By 1900 all of Africa, except Ethiopia and Liberia, was
controlled by European powers
Colonial rule challenging and expensive
"Concessionary companies": granted considerable authority
to private companies

empowered to build plantations, mines, railroads

made use of forced labor and taxation, as in Belgian
Congo

unprofitable, often replaced by more direct rule
Direct rule: replacing local rulers with Europeans--French
model

justified by "civilizing mission"

hard to find enough European personnel
Indirect rule: control over subjects through local
institutions--British model

worked best in African societies that were highly
organized

assumed firm tribal boundaries where often none existed
AFRICA 1880 & 1914
EMPIRES IN THE PACIFIC

Australia and New Zealand
•
Both became settler colonies in the Pacific
•
1770, Captain Cook reached Australia, reported it
suitable for settlement

1788, one thousand settlers established colony of
New South Wales

Became a penal colony after loss of Georgia in
American Revolution

1851, gold discovered; surge of European
migration to Australia
•
Fertile soil and timber of New Zealand attracted
European settlers

Europeans diseases dramatically reduced
aboriginal populations

European flora and fauna replaced most native
species
•
Large settler societies forced indigenous peoples
onto marginal lands
•
•
•
•
•
Pacific Islands
Spain and the Pacific

Pacific had been a Spanish possession until 19th century
(Philippines, Micronesia)

Spanish yearly shipments of silver from Mexico to China
ended in 1812
Colonization of Pacific Islands delayed until late nineteenth
century
Early American visitors to the Pacific

American Whalers throughout region after American
revolution

American merchants on way to China began in 19th
century

California Gold Rush open Pacific coast to immigrants
from Europe, China

US challenged rule in 1854 when Commodore Perry
forced Japan to open ports

Some missionaries active especially in Hawaii and on way
to China
Late nineteenth century,

European states sought coaling stations and naval ports

1867: USA acquires Alaska, Wake Island

1898: USA acquires Hawaii, Philippines, Guam

1899: German buys remaining Spanish islands

By 1900, all islands claimed by France, Britain, Germany
and United States.
Island plantations produced sugarcane, copra, guano
EMPIRES IN THE PACIFIC
Manifest Destiny. . .what does
one painting say?
U.S. IMPERIALISM





Westward Expansion, Manifest Destiny precede overseas imperialism
•
•
•
•
•
Americans push west after American revolution
Drove Indians from land
US purchases Louisiana from France
Opened up West to settlement
Americans saw it as God-given right to occupy continent
•
•
•
•
•
•
•
1823: proclamation by U.S. president James Monroe
Opposed European imperialism in the Americas
Justified American interventions in late 19th, 20th century
Used doctrine to tell France to withdraw from Mexico in 1867
United States purchased Alaska from Russia in 1867
Hawaii became a protectorate in 1875, formally annexed in 1898
Tended to leave area open only for American investments, loans
•
•
•
US annexation of Texas set off conflict with Mexico
US defeats Mexico, annexed 1/3 of Mexican territory
Settlement of Far West, Pacific Coast, Great Basin follows
•
•
Acquires small Pacific Islands, Alaska from Russia in 1867
Economic interests in Hawaii lead to revolution, annexation in 1898
•
•
US defeated Spain and took over Cuba, Puerto Rico, Guam, and Philippines
US and Philippines
The Monroe Doctrine and Latin America
The Mexican American War 1846 – 1848
1867 – 1898
The Spanish-American War (1898-99)



Backed Filipino revolt against Spain, purchased and took over the colony
1902-1904, bitter civil war killed two hundred thousand Filipinos, ended in U.S. victory
The Panama Canal, 1903-1914
•
•
•
Colombian government refused U.S. request to build canal at Panama isthmus
US helped rebels establish the state of Panama for the right to build a canal
Completed in 1914; gave United States access to Atlantic and Pacific
MAP OF AMERICAN IMPERIALISM
IMPERIAL JAPAN

•
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•
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•
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•
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•
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Japan and the West
1854: US Commodore Perry forces Japan out of isolation
Japanese resented unequal treaties of 1860s
Borrowed western knowledge
Resolved to become imperial power
Early Japanese expansion in nearby islands
1870s, to the north: Hokkaido, Kurile islands
By 1879, to the south: Okinawa and Ryukyu Islands
Meiji Government
Prussia trained Japanese army, Britain trained Japanese navy
Bought British warships, built up navy, began building own ships
Established military academies
1876, imposed unequal treaties on Korea at gunpoint
Made plans to invade China
The Sino-Japanese War (1894-95)
Rebellion in Korea: Chinese army sent to restore order, reassert authority
Meiji leaders declared war against China, demolished Chinese fleet
China forced to cede Korea, Taiwan, Pescadores, Liaodong peninsula
Japan helps suppress Boxer Rebellion, creates own zones in China
The Russo-Japanese War (1904-05)
Russia had territorial ambitions in Liaodong peninsula, Korea, Manchuria
Japanese navy destroyed local Russian forces
Reinforcements from Baltic sunk at Battle of Tushima
Japan now a major imperial power
Made an alliance with Great Britain
1910: Annexes Korea
JAPANESE EMPIRE
MODERN ERA
INTERACTIONS:
RISE OF
INTERNATIONAL
DIPLOMACY
1750 - 1914
DIPLOMACY: BALANCE OF
POWER & HEGEMONY


Century: Era of Western hegemony in all areas
Balance of Power dominates century
•
•
•
After Napoleon, great powers kept peace
Intervened in European affairs to maintain balance
Goals and Policies





No one power should dominate
No nation should be eliminated
No permanent ideologies threaten peace
Brokered conferences to decide touchy issues
International Organizations
•
Non-governmental Organizations new in history


•
Red Cross


•
Established at end of Crimean War
Provide health care, relief following catastrophes
Olympics


•
Try to promote international accord
Establish cooperation
Resurrected in 1896
Healthy competition
International Laws


Diplomacy reaches highest level during period
Rules of Peace and War
•
•
•
•
Hague Conferences and Conventions
Agreements create standards, rules of war, peace
Neutrality was a key concept
Civilians were not to be touched
PRE-WAR ALLIANCES

•
Rival systems of alliance
Germany forms alliances



•
France and Russia



•
Germany, Austria-Hungary, Italy

•

France, Russia

•
Common enemy: Germany, common war plans
Worked together diplomatically
Why the United Kingdom joined




•
•
•
Ottoman Empire: German railroads, reforms of military
Bulgaria and Rumania fearful of Russia and Serbia
The Double and Later Triple Entente


Germany, Austria allied 1879
Italy joined in 1882 (Triple Alliance)
Others Allied States

•
Found themselves isolated, fearful of Germany
Formed Double Entente to end their isolation
The Triple Alliance


Bismarck attempts to isolate France
Until 1890, Germany had alliances with all except France
Obligated allies to come to one another's defense
Due to rivalry with Germany over colonies and German construction of a navy
After German pre-war diplomacy seemed to lead to war
Shifting series of treaties ended with a military pact, 1914
Japan had a separate alliance with Great Britain for Asia Pacific
War plans: each power poised and prepared for war
Military leaders devised inflexible military plans and timetables
France's Plan XVII focused on offensive maneuvers and attacks
Germany's Schlieffen plan: swift attack on France, defend against Russia
ALLIANCES
c. 1914
MODERN ERA
INTERACTIONS:
TRADE AND COMMERCE
1750 - 1914
COMMERCIAL IDEOLOGIES IN 1750

Mercantilism
•
Limited amount of wealth in the world



•
If one nation benefited, another suffered
Goal is to maximize nation’s portion of trade
Goal is to exclude competition from markets and monopolize wealth
Governments pass legislation to support domestic commerce


Trade incentives for local producers
Establish barriers to outside trade
•
•
•
•
Governments support colonization, imperialism



•

Colonization: find homes for excess population
Imperialism provides markets, resources for domestic industry
Foreign possessions bring glory, wealth to the nation
Almost every nation in the world subscribes to this theory
Free Trade
•
•
•
•

Tariffs, excise taxes
Quotas, restrictions on imports
Infant industries support
Wealth is not finite but can be created
To maximize wealth, allow people, industry to compete freely
Governments exist to protect competition, not guarantee success
UK, US (American colonies), Dutch are free traders
Adam Smith and the Wealth of Nation
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Intellectual father of capitalism, free trade; ideas came to dominate US, Great Britain
By 1914
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UK was 1st in world, US was 3rd
English, American companies dominated world trade, finance, industry, capital
Even Germany, 2nd practiced the doctrine often
ECONOMIC EXCHANGES IN 1750
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Domestic Trade
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Most commerce is internal, most markets are autarkic: self-sufficient
Great wealth is generated in trade but not as much as domestic production
Most workers, farmers generate wealth only sufficient for self consumption
International Trade
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Conditions of Trade
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Mercantilism predominates
International trade tends to be limited to cash crops, finished luxuries
Western Europe dominates most trade
Only Eastern Asia has the ability to rival, challenge Western Europe
Trade Markets
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Western European exports and imports
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Eastern Europe, Southern Europe, Northern Europe, SW Asia
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Imports: finished products, finished luxuries
Exports: minerals, primary products, cash crops
Eastern Asia
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Imports: finished products, finished luxuries
Exports: minerals, primary products, grains
Americas including Caribbean, South Asia
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Exports: finished products, finished luxuries
Imports: raw materials, minerals, primary crop luxuries
Exports: finished products, finished luxuries, cloths, silks
Imports: minerals (silver), luxuries, luxury food
Note: most economies limit European influence, contacts
Africa
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Imports: finished products, finished luxuries, cash crops
Exports: slaves, ivory, gold, cloves
ECONOMIC EXCHANGES IN 1914
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Saw the rise of international trade
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Trade involved all types of products, goods for first time
Entire world involved: all continents, peoples effected
Some nations traded to exist: made their wealth off of trade
Very few nations produced finished goods for international market (core)
Most nations supplied world markets with raw materials (periphery)
Nations had begun to specialize in trade (we cannot produce everything)
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Most items traded were finished goods, industrial products
Wealthy nations tended to trade with each other
Western Colonies, Latin America, all of Asia except Japan
Terms of Trade
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Nations began negotiating trade agreements
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Only accounted for a small part of trade
Generally exported primary products, imported finished products
The US and later UK came to favor open markets (markets open to all)
Most favored nation status was goal: partners traded as equals
Rise of international capital markets
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Domestic profit needed to be invested, sometimes best opportunities abroad
Money invested abroad to reap benefits at home
Rise of international banks, investment opportunities
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Corporations had branches, outlets in other nations
Facilitated the transfer of technology, ideas, people between continents
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Linked the world better than most ideologies
Was an instrument of revolutionary change to traditional societies
Was a threat to traditional societies
Rise of Multinational Corporations
International Economic Exchanges
Rise of international communism, socialism as reactions to international wealth