Chapter 16: The world economy

Ferdinand Magellan

(1480?-1521) Portuguese-born navigator. Hired by Spain to sail to the Indies in 1519. Magellan was killed in the Philippines (1521). One of his ships returned to Spain (1522), thereby completing the first circumnavigation of the globe.

French explorers crossed the atlantic first in? Where did expeditions go to?

1534, reaching/claiming Canada In the 17th century various expeditions pressed down from Canada into great lakes region/Mississippi valley

Dutch east india company

A company founded by the Dutch in the early 17th century to establish and direct trade throughout Asia. Richer and more powerful than England's company, they drove out the English and Established dominance over the region. It ended up going bankrupt and being bought out by the British

Merchants used silver to buy

Asian goods (Indian spices, Chinese porcelain/silk)

The world economy gained ground over time

Centerpiece of the process of proto-globalization

The largest recipients of new world silver were... effects?

China and India It began to replace paper money (even in common purchases)

Impact on WEstern Europe

Economic/diplomatic effects of colonial sucess Colonial rivalries added to multitude of conflicts

New france

French colonies in north america HAd 55,000 settlers by 1755

By the 18th century Western traders were advancing in

India, as the Mughal empire began to fall apart British/french east indian companies staked out increasing roles in internal trade/administration

European administration in most colonies

Loose, few settler arrived except in south africa/americas Cultural imposition slight outside of the americas Missionary activity won converts in Philippines

Were people in dependent latin america/slave shipping parts of africa poor? Were they involved in the market economy at all?

Not all people, African princes who taxed/traded slaves could grow rich No, they produced for local subsistence with traditional motives/methods Significant minorities involved in production for world markets

Value of North American products (furs/timber)

Not nearly as great as the profits from the Caribbean and Latin america so much less attention was placed to economic regulation Some new merchant manufacturers in North america

Did new economic inequalities/empires overseas emerge?

Of course. In other facts, French fries were sold in the streets of france by 1680

Why did many Europeans turn to manufacturing?

Opportunities to export in world trade Enhance european commercial character/ dependence on agriculture alone More tax revenue

How long did the devastation take to occur and what did it mean

Over 150 year period (more rapid in other areas) Huge blow to earlier civilizations in Americas but an opportunity for Europeans to forage a partially new part of their own citizens/African slaves

The first colony was in: Under:

Panama Under Vasco de Balboa, led to conquest of Aztec and inca (1531) Then to parts of columbia and other parts of the andes region (portions of argentina Expansion resulted from efforts of adventures

Global currency of the early modern period was Production and the use of silver show

Silver It showed the power of the new world economy emerging after 1500

Only a short time after Portugal quest began what other country reached out with even greater force and what similar characteristics did it have with Portugal?

Spain, they traveled into the Atlantic in the 14th century Both just reconquered from Muslim rule, Missionary zeal and desire for riches

Vasco de Balboa

Spanish explorer who became the first European to see the Pacific Ocean in 1510 while exploring Panama

British early timeline in North America

Started with brief expedition in 1497 Wanted India but got Canada in the 16th century 17th century got real and they colonized the east coast of North America

The new adventurers, like Spanish and Portuguese predecessors, appreciated

The economic potential of such voyages Quest for profit became a dominant policy motive

Native american contact with Europeans

The got pushed further west Some turned to horsed based hunting economy and they had distracting territorial wars Never combined to create a cultural group like in Latin america

What is Mita and why did people do it?

The inca system of drafting workers for short stints, they did it because they were desperate for labor By 1600, there 150,000 miners at Potosi, 1/3rd from the mita system

Why did guns have relevance to Japan's ongoing feudal wars?

There was no disdain for military life

What about spain?

They asserted their hold on the Philippines, various pacific islands and the bulk of the Americas (backed them with military expeditions to mexico and south america in the 16th century) Also they had Florida and sent expeditions to California

Why did Portuguese sailors venture around the cape of good hope in the 15th century? Results?

To find india, having direct contact meant easier access to luxury goods and spices They rounded it in 1488, called it quits but after hearing about Columbus fining America for Spain in 1492 they tried again and found it 1498 under Vasco de Gama with the help of a Hindu pilot

Why did Britain pass tariffs against the import of cotton cloth made in india?

To protect Britain's own cotton industry Intent to use India as a market for British processed goods/Source of outright payments of gold

Japanese leaders worried about......so they.....

Western influence/impact it could have on internal divisions among warring lords and the threat guns posed to samurai military dominance So they encouraged a local gun making industry that matched euro muskets and cannons then cut off most contact with any world trade

17th century all 3 gained control of several west Indian islands

Which they involved into growing slave trade

Sugar

it was an effect on daily life, it became a basic product

Europe's new maritime strength/trade patterns (like adding the americas) generated wider changes

1490s onward, range and significance of exchange increased, key manifestation of proto-globalization

Britain won a historic sea battle with spain in

1588, routing the massive spanish armada

when was Core colony established?

1652

When did Europe make contact with Polynesians/Pacific coast people? How did it go?

18th century Same sad pattern, undermining vibrant cultures

What was the population of the American colonies?

3 million, less than latin america Southern colonies that produced cash crops such as tobacco, sugar and cotton became important

British east india company

A joint stock company that controlled most of India during the period of imperialism. This company controlled the political, social, and economic life in India for more than 200 years.

Human labor was: Parts of Sub Saharan Africa:

A vital item of exchange Entered world economy mainly as suppliers of slaves Earlier trade patterns across the Sahara yielded to a more dominant focus on Atlantic activities organized by western traders

Chinese explosives: European metalwork that was steadily advancing:

Adapted into gunnery Allowed western metal smiths to devise the first guns/cannons (not too accurate but huge at the time, it scared the Europeans themselves somewhat)

Profit Europeans brought in from world trade:

Added wealth and capital

When did Boer settlements clash with bantu farmers? Effects?

After 1770 Opened a long battle for control of South africa until late 20th century

By the late 18th century what was going on for America

American merchants were trading with China North America developed a small merchant class/some manufacturing

An expedition headed by who gave the new world it's name

Amerigo Vespucci

Mercantilism

An economic policy under which nations sought to increase their wealth and power by obtaining large amounts of gold and silver and by selling more goods than they bought like how colonies supported the mother country

new york

Began as a duch settlement but taken over by english expedition in 1664

In 1492 what did Christopher Columbus do?

Besides it being the same year the last Muslim fortress was captured in spain he set sail to india, or so he thought He failed at reaching india but initiated European discoveries in the Americas, died thinking it was actually India

****INITIAL SPANISH AND PORTUGUESE LEADERSHIP CHALLENGED BY

Britain, france and holland

What happened afterwards

British and Dutch and to some extent french vied for dominance of the seas

At the end of the 18th century what happened in a famous British mission

China swerved them, claiming they had no need for outside goods European eagerness for Chinese goods was not matched by them (euros like porcelain)

Worries about silver included

Chinese observers thought it created a wider gap between the rich and poor (the poor struggled to find silver) Some Europeans worried about the effort put into getting silver (even fewer about mine conditions) They agreed that the new consumer goods were worth the trouble

Portugal emerged this first round of exploration with

Coastal holdings in parts of Africa/Indian port of Goa, lease on Chinese port in Nucao, short lived interests in trade with Japan and claim on Brazil

Since 1100, various European leaders had become increasingly aware of the world around them since: After the mongol collapse in China:

Crusaders brought knowledge of Islamic superior economy/ Asian goods After that collapse the once strong link between Europe and china broke and China was once again a mystery to Europeans

.

De Gama used ships guns to intimidate His forces killed and tortured many Indian merchants

Who did they deal with in Africa/ What deterred them from reaching the interior?

Dealt with west african government and traders Negotiated with african kings Climate, disease and non-navigable rivers stopped them

Why did coercive labor systems spread? In the Americas this led to

Dependent economies relied on cheap production of unprocessed goods Led to tendency to build up system of little cost labor when labor supply was already limited Americas had population loss from disease so this led to the massive importation of African slaves

Early colonies in the americas

Developed by small bands of gold hungry Europeans, often controlled by colonial administrators back home

What technological developments/improvements helped Europeans in the 15th century?

Development of deep draft sailing ships for the Atlantic (could carry heavy armaments) Using/improving compass, map-making and navigational devices

By 1200 the practice of slaveholding/interactions with African american culture:

Distinguished North american life with euro counterpart By the 18th century 23% of the colonies had African origins

Boers

Dutch settlers in South Africa

Why did animal husbandry become more similar across the new world?

Euro/Asian animals (ex horse/cattle) were introduced into the new world

Seven years war was fought in?

Europe India North america

Why were opportunities to establish colonies so inviting in the Americas?

European guns, horses, and iron weapons offered advantages where political disarray/ population losses offered openings

The most active competition in world trade emerged between who? Why didn't spain dominate with it's imports of silver?

European nations themselves It lacked a good banking system / could not support a full commercial surge England/France/Holland (merchants had firmer status) soon pulled in lions profits from world trade

Initiative for expedition came from Portugal, who's rulers were drawn by what?

Excitement of discovery Harm they might cause to Muslim world Thirst for wealth

1291 onward, what new problems did Europeans face as they launched a more consistent effort of expansion?

Fear of strength of the Ottoman empire Lack of gold to pay for Asian imports (settlements in south Atlantic fed hope for gain)

What led to English speaking contingent in Canada?

Flight of American loyalists after 1776 revolution

In canada, first substantial european settlements were launched by

France under Louis XIV, french peasants were forced to emigrate Hard to produce adequate labor force but birth rates were high

Which was more interested in missionary work?

Franch, The british were content to leave hindu customs alone/devote themselves to commercial profits Protestants deeply commited to colonial missions in the 19th century

Companies in North america traded actively in

Furs

British east india company had 2 advantages here against France

Gained a station at Calcutta Had a big influence on Britain's government (navy) while french rivals had less of a political clout at home (the french were distracted by land wars)

The colonies operated their own assemblies

Gave political experience (closer to euro forms) Calvinist and Quaker church assemblies gave governing power to elders and wide congregations

How did eastern Europe fit into the world economy?

Growth of cities in west created need for imported grains by the 18th century Much of this demand was met by the east

By that time European upper classes:

Had grown accustomed to imported goods from SE Asia and India (it was transported to the middle east in Arab ships then loaded to vessels for Mediterranean trade

What did they buy/trade?

Had mainly crude goods for sale, some gold They returned with a small load of spices

Colonist science and reading

Imitated Europe a lot, hundreds of north americans contributed scientific finding to the British royal society They liked European political theories/enlightenment and John Locke

Did Holland have any holdings?

In north america and briefly Brazil They became a major competitor with Portugal in Southeast Asia after the dutch won independence from Spain 17th century they got indonesian islands/Post in SAF

By 1514 Portugal reached: Results of the 1542 port expedition in Japan:

Indonesia (center of spice production) and China Missionary effort was launched that had success for several decades

Rulers of Indian Mughal empire in 16th century India

Interested in western traders/ encouraged enclaves Sold goods, cottons/spices/textiles for new world silver Most attention was on internal development/land based expansion and commerce (world trade was on the side, same for ottoman and Safavid empires)

Why did Europe get special access?

International trade gained growing influence in supplementing regional economies and Europe ran trade

Although Europe did not conquer much inland territory in Africa or Asia: Where did spain and portugal set up ports and why were they useful:

It did seek a limited network of secure harbors West African coast, Indian subcontinent, Islands of SE Asia, Chinese port at Macao (all by 17th century) European controlled ports served as areas for contact with overland traders (usually local merchants) and provided access to inland goods not directly within reach for west

What made silver blow up like this? Where was it?

It had always been valued but when Europeans discovered it in the Americas it blew up Mexico had some mines but Potosi Bolivia had an enormous vein of ore

When colonies rebelled in 1776:

It was in the name of Western political ideas/economic goals against dependency Britain tried to impose Implementing key ideas for the first time

Similar patterns of Atlantic/Latin American colonies

Large estates with imported slave labor/wealthy planter class bent on importing luxury item from western Europe Weak formal government

When did britain and france start to struggle for control in India? When did the last Mughal emperor die?

Late 17th century as the Mughal empire weakened, forts dotted the coasts 1707

Russia

Lay particularly outside of the world economic orbit until the 18th century They traded with nomadic peoples in central Asia (largely agricultural society)

Francisco Pizzaro

Led conquest of Inca Empire of Peru beginning in 1535; by 1540, most of Inca possessions fell to the Spanish Attacked the divided empire and was killed in 1541 by inca rebels

Britain and Holland emphasized religion

Less than European Catholics

Colonial leaders started as: Then transitioned:

Limited control over native populations and content with just tribute and sometimes left existing leaders in place The formal administration spread, including active missionary efforts to Christianize the native peoples

Portuguese in India

MESS. They thought Indians were Christians/Hindu temples were churches Faced hostility of Muslim merchants (they long dominated trade in this part of the world)

Despite all of this India:

Maintained a complex regional economy still Not forced into complete dependency like latin america but manufacturing began to decline

In return for slaves what did Europe trade?

Manufactured items (guns) while profiting from their control of commercial/shipping services

Timeline of French/British rivalry

Mid 18th cent was outright warfare 1744= seven years war 1756= independent ruler in Bengal captured British base Calcutta (English used this to rally forces (recapture it) French power in India destroyed / east india company took over administration of Bengal region British also gained ceylan from Dutch

The effect of Silver on China's tax system

Ming dynasty required tax payments in silver Reduced the number of tax collections Helped sustain a standard of living in China that early into the 19th century was superior to to Western Europe

What facilitated the spread of western values in Atlantic colonies and British/French settlements in Canada

Modest population of Native Americans in these areas and few practiced settled agriculture (hunted, slash and burn crops) so that helped them

Japans position

More fully pulled back, like Korea Showed some openness to Christian missions Fascination on western advances in guns and shipping

Later trip involved: Why?

More violence They substituted force for lack of items in world trade

Where did China trade? How did they keep European activities in check?

Most of their limited trade was channeled through Macao China copied some firearms manufacturing from Europeans on a low level, beyond this there was extensive government regulation backed by a coastal navy

Core nations

Nations, usually European, that enjoyed profit from world economy; controlled international banking and commercial services such as shipping; exported manufactured goods for raw materials.

The greatest victims of disease spread from the extension of international contacts was:

Native Americans who haven't been exposed to AfroEurasion diseases (smallpox/measles) Up to 80% losses North/South america lost more than half of their population Island populations in west indies were wiped out

Lepanto

Naval battle between Spain and the Ottoman Empire resulting in Spanish victory in 1571; demonstrated European naval superiority over Muslims.

Both of these reflected/encouraged

New world system Tariff policies discouraged manufacturing in colonial areas/stimulated home based manufacturing

Northern Europe got the lead in exploration in the 16th century as

Newly strong monarchies (ex. France/ England) got into exploration and Protestants in Britain and Hollad strove to rival Catholic gains

What did this mean

No hope for successful Muslim rivalry with Europeans, Turks rebuilt and continued in Eastern Mediterranean but could not challenge Europe on larger international routes

Did Europeans displace Asian shipping from coastal waters of China/Japan or completely monopolize the indian ocean?

No, along east africa (vast) muslim traders remained active They got into trade between other societies which gave them more profit and influence

The 2 exceptions were

Portugal expedition to angola in search of slaves Core colony= Dutch colony established at core of good hope

New world economic relationships: Most areas established as dependent by the 17th century:

Proved highly durable Still carry some special burdens in world trade today

Art in colonies: North American leaders saw themselves as:

Rather primitive, came Europe As part of larger western world

Euro settlers colonized Atlantic coastal region, driven by? Effects on native population?

Religious dissent, ambition and other things The native population quickly reduced due to disease and war

how did Europeans write about China

Scornfully, saw them as refusing to advance for listening to emperor/keeping tradition

Export grains were produced by: Relationship similar to:

Serfs on large estates mainly Similar to latin america, except outside of Poland Europe grew stronger than Latin american counterparts

Henry the navigator organized: When did Portuguese begin to press down on African coast?

Series of expeditions along African coast/Outwards islands like Azores In 1434, Each expedition going further than the last, brought back slaves, spices (like pepper) and stories of golden hordes that they could not find

De Gama's success set what in motion? Where did Portugal begin to set up ports?

Series of port voyages to Indian ocean, and one that ended up in Brazil (Where Portugal proclaimed port sovereignty) African coast/India, Colonies in Mozambique (Africa) and Goa (India)

Spanish colonization route: When did they begin to settle on the mainland?

Several west indian islands (hispanola then cuba, Jamaica/Puerto rico) in 1509, in search of gold

North american and Western civilization

Similar family structure (North AM could have more children and marry younger) American focus on children (perhaps since they were depended on for labor New emphasis on family affection

Europeans in Africa:

Small coastal fortresses, did not try to claim large territory Sold Asian (Indian cotton) and European (guns) products in return for slaves

Another margin of profit for WEUR was expanding manufacturing operations

So it could export finished goods (guns/cloth) for unprocessed goods (silver/sugar)

Cape of good hope

Southern tip of Africa; first circumnavigated in 1488 by Portuguese in search of direct route to India.

Why did this shift in dynamism occur?

Spain and Portugal were busy digesting the gains made Northern Europe (particularly Dutch and British) improved oceanic vassals (lighter and faster than catholic adversaries)

Relations between British officials and French canadian comunity remained

Stiff as british settlements developed in Eastern canada and ontraio

Asia's participation in the world economy:

Strong/Profitable, did not sponsor the most active merchant ventures Chinese government avoided international trade on other peoples terms (since they renounced large scale international trade in the 15th century)

Main impact of colonies/they pressed for...

Supplemented more general devlopment of world economy Pressed for economic advance of home country (open markets/cheap goods)

For many native Americans/Mestizos: More limited examples of estate management rose for

Systems of estate management developed that demanded a large amount of labor Spice production in Dutch east indies, peasants forced into labor without the freedom to leave/ developed in British indian agriculture productions in the 18th century

The first expeditions were limited by

The small oar propelled ships used in the Mediterranean trade could not travel far into the oceans

Why did they aim northward in the americas? Any exceptions?

They couldn't challenge Spanish/Portuguese colonies, only in the sugar rich west indies did northern Europe seize lands claimed by spain

How much silver did the Spanish keep from Latin america? What did they do with it?

They kept 1/5th (It was their chief gain of the american colonies) Silver allowed spain to build large armies and new buildings More silver sent to Europe passed Spain to merchants elsewhere/ Philippines to trade for Chinese products they could not otherwise afford

What disadvantages did Europeans have as they entered this era of growing contacts?

They were ignorant of the wider world, afraid of distant voyages since they did no want to fall off the world's edge ex.) Vikings from Scandinavia reached Greenland and then north America in the 10th century but lost interest because the indigenous warriors weapons were too good

Historical causation differs from scientific causation

This is important to remember because history is more complex and carries a variety of subjects and reasons Some of which include: Exceptional individuals, culture, tech, and politics.... No uniform agreement

Hardships of voyagers and their crews

Tiring work Uncertain at times Married men missed their families

Chinese managed to avoid: Chinese manufacturing gains led to a:

Trying to keep up with European developments/ subservience to European merchants led to a strong export position (they obtained a lot of silver)

At first natives seemed

Uncivilized with potential to the incoming explorers, Columbus was like a brother to the inca ruler Atahullpa, whom he them defeated in 1533 for religious reasons

Why did britain try to impose firmer limits on thriving colony economy?

Wanted to ensure a market for British goods/traders Wanted more tax revenue This caused rebellions in key colonies

Areas beyond western europe

Were increasingly emerged in world economy but as dependents to core nations

Other exchanges , like the new world crops: Where were these crops taken/What did they trigger?

Were less dire, spread rapidly via western merchants American corn, sweet potato, root crops taken to China Mediterranean/ parts of Africa Those crops with local agriculture improvements triggered population increase

Effects of these developments:

West began to forage military advantage over other civilizations, first at sea primarily (til 20th century) Unprecedented ability to kill/ intimidate from a distance

When direct control was not possible, European influence led to the formation of

Western enclaves in existing cities, western traders won special legal righrs Pattern in ottoman empire, elements of this seen in Japan after firm isolation policy was launched in 1600 (Dutch traders got special access in nagasaki)

Spain, eager to claim this new land

Won papal approval for Spanish domination most of what is now latin america Later treaty awarded Brazil to portugal

Would it be safe to say food played a key role in world system created in early modern period

Yes, 30% of foods consumed today come from plants with American origins Corn became staple in African diet/European were more conservative (ironic) Rumors of american food spreading diseases spread so potatoes took a while to gain ground

Did trade continue after this? What did westerners do to compensate?

Yes, a little They made their own porcelain industry by the 18th century (contributed to the industrial revolution, esp in Britain)

Treaty of Paris

a 1763 agreement between britain and france that ended the french and indian war

From the 17-19th century Japan entered a period of:

almost complete isolation except for some Chinese contact and trading concessions to small dutch enclave near nagasaki Most Japanese were forbidden to travel/trade abroad (small christian minority was suppressed)

British gov took a more active hand in Indian administration until

late 18th century, british control of indian subcontinent incomplete (mughal was still there)

Did france britain and holland establish colonies in the Americas?

later but yes, france found Quebec from 1600 onward to mississippi basin, Dutch and English settlers moved to portions of the atlantic coastal region early in the 17th century

seven years war

worldwide struggle between France and Great Britain for power and control of land