Transcript The World Economy

Chapter 16
Whole Chapter
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Study Guide
COLD
 Colonialism
 Oceanic trade
 Labor (forced)
 Discovery
#1 The West’s First Outreach
 Why explore?
New Technology
 What new Tech does Europe
have?
 Where did they get it?
 Major explorers?
I. The West’s First Outreach
 Need to explore: Fall of the Mongol Empire
removed the economic trade network to Asia
 Motives
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Spread Christianity
Competition
Discovery
Wealth
New Technology
 15th century Europeans developed deep draft,
round hulled sailing ships that navigated
Atlantic
 caravels
 Compass
 Mapmaking
 Explosives- Created advanced gunnery
Portugal Leads the Pack
 Henry the Navigator
 Wanted cheap route to
India
 sponsored expeditions
down coast of Africa
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Set up coastal ports along
west side of Africa
Found Slaves, spices, legends
of gold
 1488 Rounded Cape of
Good Hope
 Vasco De Gama reached
India in 1498
 Set in motion annual
expeditions to India
C. Spain Tries
 1492 Columbus tries Westward route
 Pope decides Latin American belonged to Spain
 1519 Magellan sailed around the world
 Claimed Philippines, Florida & portions of California
 Begin exploration of Mexico (Aztec), Peru/Chile (Inca)
Northern European
Expeditions
 Britain began looking for Northwest passage to India in 1497
 made settlements in N.America
 Fish!!!
 colonized east coast of N. American in 17th Century
Spain & Portugal were busy
Britain defeated Spanish Armada in 1588-Became Navy
Boss.
 France- Canada
 Netherlands- Australia but no real result
Problem
 Pretend you are a business owner in England in 1572
 You want to cash in on the new oceanic trade, but
cannot afford to requisition (pay for) the expensive
journey (ships, crews, etc.)
 What could you do?
Shopping List
Rules:
Each group begin with 1000 each
Make the largest profit,
No rules,
prices not negotiable
Ships
 Small (2 loads)- 500
 Medium(4 loads)- 800
 Large (8 loads)- 1000
Exchange Rate
Cotton sells for 150 per load
Crew/food
 Small-200
 Med-400
 Lg-600
Trade Supplies
 Cotton- 100 per load
 Sugar- 200 per load
 Silver- 300 per load
Sugar sells for 400 per load
Silver sells for 700 per load
#3 Trading Companies=$$$
 Dutch East India Co and British East India Company
 Gov gave them monopolies on trade w/ new world
 Not supervised by gov.
 Had armies
 Had their own money?
 Companies acted like mini –gov in occupied territories
Columbian Exchange
 What does this term mean?
 Predict implications of this exchange.
 Imported disease killed more than 50% of Natives
 Uniform husbandry with importation of horse, cattle to New
World
 New World crops spread to Old World
 Corn & S. Potatoes in China, Mediterranean & Africa
 Potato in Europe
 Cacao and tobbacco
 Spurred tremendous population growth
***MERCANTILISM
 Spain & Portugal- Silver!!! But squandered with poor banking.
 France, Britain, Holland (dominant core nations) -
-EXPORTS!!
expanded home manufacturing to export to colonial holdings in exchange
for sugar, silver
 Doctrine of Mercantilism- EXPORT more than you IMPORT!!! Make
money. Hoard!!! tariffs discourage manufacturing in colonies
 Think about it:
 Europeans export manufactured goods (businesses make $) and
import silver, tobacco, luxury goods, slaves
 Colonial areas (Africa, India, Islanders) export raw materials and cash
crops. Import and BUY European products.
 Who has the better deal?
How the World was Affected
#1 AMERICAS

European weapons provided special advantages at
conquering Native populations
Spain: Cortez conquered Aztecs, Pizarro conquered
Inca
Conquistadors
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Spread Catholic religion- forced baptisms
Get $$$$
Cheap labor
West’s Commercial Outreach
 West begins to dominate oceanic trade
 Battle of Lepanto- Spanish navy beat Ottoman Turksshowed naval dominance
 Built secure trade ports in W. Africa, India, SE Asia, even
China and Japan!!!
 International trade had become important worldwide.
 Europe had the edge!
#2 AFRICA
 Settlements in Africa were small coastal fortresses used
as stations en route to India
 Slave trade hits W. Africa
#3 PHILIPPINES
 Spain –Philippines- spread Catholicism
#4 INDIA
 Britain & France –India for $$$
 recruited Indian alliances
 7 Years’ War
 British victory in India
#5 ASIA
 China benefited, only participated at their own terms
 Japan initially attracted to West (guns)- later complete
isolation from 17th-19th centuries
America
 France est. colonies in Canada
 British colonies inhabited by Pilgrims and Puritans
 Southern colonies rely on slave labor plantations
 NE Colonies closest replica of Europe
 Unlike Spanish and Mesoamerican natives- little
blending
Impact on W. Europe
 Created Colonial Rivalries between Key European
nations; 7 Years’ war a result of rivalries
 Spread of sugar to all classes of people; first hint at
excessive European commercial behavior
 World trade added wealth & capital to European
economy, invested in manufacturing, less reliance on
agricultural economic methods
 Fueled growing national monarchies with military
ambitions