The World EconomyChapter 16

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Study Guide

COLDColonialismOceanic tradeLabor (forced)Discovery

#1 The West’s First OutreachWhy explore?

New TechnologyWhat new Tech does Europe

have?Where did they get it?

Major explorers?

I. The West’s First OutreachNeed to explore: Fall of the Mongol

Empire removed the economic trade network to Asia

Motives Spread Christianity Competition Discovery Wealth

New Technology15th century Europeans developed deep

draft, round hulled sailing ships that navigated Atlantic

caravelsCompassMapmakingExplosives- Created advanced gunnery

Portugal Leads the PackHenry the Navigator

Wanted cheap route to India

sponsored expeditions down coast of Africa Set up coastal ports

along west side of Africa Found Slaves, spices,

legends of gold1488 Rounded Cape of

Good HopeVasco De Gama

reached India in 1498Set in motion annual

expeditions to India

C. Spain Tries 1492 Columbus tries Westward route

Pope decides Latin American belonged to Spain1519 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 1497made settlements in N.AmericaFish!!!colonized east coast of N. American in 17th Century

Spain & Portugal were busy Britain defeated Spanish Armada in 1588-

Became Navy Boss.France- CanadaNetherlands- Australia but no real result

ProblemPretend you are a business owner in England

in 1572You 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 ListRules: Each group begin with 1000 eachMake the largest profit,No rules, prices not negotiable

ShipsSmall (2 loads)- 500Medium(4 loads)- 800Large (8 loads)- 1000

Crew/foodSmall-200Med-400Lg-600

Trade SuppliesCotton- 100 per loadSugar- 200 per loadSilver- 300 per load

Exchange Rate

Cotton sells for 150 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

CompanyGov gave them monopolies on trade w/ new

worldNot supervised by gov.Had armiesHad their own money?Companies acted like mini –gov in occupied

territories

Columbian ExchangeWhat does this term mean?Predict implications of this exchange.Imported disease killed more than 50% of NativesUniform husbandry with importation of horse,

cattle to New WorldNew World crops spread to Old World

Corn & S. Potatoes in China, Mediterranean & Africa

Potato in Europe Cacao and tobbacco Spurred tremendous population growth

***MERCANTILISMSpain & 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, slavesColonial 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 Spread Catholic religion- forced baptisms Get $$$$ Cheap labor

West’s Commercial OutreachWest begins to dominate oceanic trade

Battle of Lepanto- Spanish navy beat Ottoman Turks- showed 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 AFRICASettlements in Africa were small coastal

fortresses used as stations en route to IndiaSlave trade hits W. Africa

#3 PHILIPPINESSpain –Philippines- spread Catholicism

#4 INDIABritain & France –India for $$$

recruited Indian alliances7 Years’ War British victory in India

#5 ASIAChina benefited, only participated at their own

termsJapan initially attracted to West (guns)- later

complete isolation from 17th-19th centuries

America France est. colonies in Canada British colonies inhabited by Pilgrims and

PuritansSouthern colonies rely on slave labor

plantationsNE Colonies closest replica of EuropeUnlike Spanish and Mesoamerican natives-

little blending

Impact on W. EuropeCreated 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