Transcript 1c Global System x

Western Global Dominance
Essential Question
• What are the origins of
global patterns of wealth
and dominance?
GLOBAL GDP in the 21st Century
Western Global Dominance
Today’s Goals:
• Describe the
Globalization of trade :
“World System” of trade
• Evaluate its impact on
Western hegemony
• Name and assess
impact of new business
advantages
Western Global Hegemony
1. World
System of
trade
Manufactured
goods
D
Agricultural
B
Commodities
(raw materials) Slaves
Luxury
Goods
A
C
World System of Trade
2. Western ships and merchants control
the global movement of goods and labor
Agricultural
Commodities
Luxury
Goods
Slaves
World System of Trade…Western
Economic Hegemony
Trade becomes a important
part of the process of…
GLOBALIZATION
The relatively free
flow of goods,
people, ideas,
technology, culture
around the world
Triangular Trade
C
A
B
A Western
hemisphere
“subset” of the
global system of
Triangular Trade
Europe
C
The
Americas
B
A
Africa
A Western
hemisphere
“subset” of the
global system of
Triangular Trade
C
A
B
Also known as the “Atlantic System”
Essential Question
What are the
origins of
global patterns
of wealth and
dominance?
GDP in the 21st Century
How does this section of unit 1 help
us to answer this question?
Guess who’s
blue?
Western Global Hegemony
• New
Business
Methods
New Business Methods
1. Joint Stock Company
• Shares of stock to raise capital
Benefits:
• Limited liability: limits risk
• Raise a lot of capital for global
scale of business
First: Dutch East India Company
New Business Methods
2. Stock Exchanges—the Dutch Bourse
(1602), London Stock Exchange (1688)
3. National Banks—Bank of Amsterdam
(1609); Bank of England (1694)
4. Insurance Companies—Lloyds of
London
New business leaders: Dutch
and English
Spain falling behind in the 1600s
Western Global Dominance
Today’s Goals:
• Explain the new
Power shift
among the
Atlantic Powers in
the 1600s
• List and assess
key Western
advantages
Global Power Shift: 1600s-1700s
SPAIN: largest
empire but in
decline
DUTCH:
trading
empire
based on
spices and
business
skills
PORTUGAL
Lost spice
trade to the
Dutch
ENGLAND:
1) Challenges Spain: Spanish Armada (1588)
2) Defeats France in the Seven Years War (1763)
Spain’s 16th “Golden Century”
Spanish Empire in 1600s
SPANISH EMPIRE IN 1880
BRITISH EMPIRE IN 1880
KEY WESTERN ADVANTAGES:
Political
Rise of nations/kings
Military
England
National armies/navies
Technological
Technology complex: Ships,
navigational, weapons,
information
Spain
Business advances and
Trade dominance
World System of Trade
Essential Question
• What are the origins of
global patterns of wealth
and dominance?
• Begins with the growing
economic and technological
dominance of the Western
World
Western Political Hegemony
Areas of the world controlled by Europeans or largely
settled by the descendants of Europeans: 1400-1925
21st Century: End of Western Economic Power?
Western Economic Power