Contact & Contact & ColonizationColonization

The Economics of Trade and The Economics of Trade and Settlement in the New WorldSettlement in the New World

Pre-Contact Society: North Pre-Contact Society: North AmericaAmerica

► Six major cultural Six major cultural areas of Aboriginal areas of Aboriginal peoples in Canada peoples in Canada

Pre-Contact Society: North Pre-Contact Society: North AmericaAmerica

EgalitarianEgalitarian► Smaller societiesSmaller societies►Nomadic hunters Nomadic hunters

and gatherersand gatherers► Interests of the Interests of the

group as a wholegroup as a whole

CentralizedCentralized► Larger societiesLarger societies► Sedentary / Sedentary /

agriculturalagricultural► Focused authorityFocused authority

Pre-Contact Society: EuropePre-Contact Society: Europe

►1616thth Century: The Modern Age Century: The Modern Age►New seafaring technologiesNew seafaring technologies►New military technologiesNew military technologies►Trade centered on spices, silks, and Trade centered on spices, silks, and

gems of Asia…costly and difficult.gems of Asia…costly and difficult.

Pre-Contact Society: EuropePre-Contact Society: Europe

►The ReformationThe Reformation led by Martin Luther, a German monkled by Martin Luther, a German monk A movement to renew the Roman Catholic A movement to renew the Roman Catholic

Church Church so that it was less greedy, fairer so that it was less greedy, fairer and accessible to all people, not just the and accessible to all people, not just the rich and well educated. rich and well educated.

Reasons for ExplorationReasons for Exploration

►To find a sea route to the spices of Asia To find a sea route to the spices of Asia ►To find gold, silver, and precious stones To find gold, silver, and precious stones ►To expand their knowledge of the world To expand their knowledge of the world ►To control a larger empire To control a larger empire ►To expand Christianity To expand Christianity

““Their incentives were threefold, the ever-present Their incentives were threefold, the ever-present “G’s”: Gospel, Gold, and Glory“G’s”: Gospel, Gold, and Glory—the desire to convert —the desire to convert others, to enrich themselves, and to win fame.”others, to enrich themselves, and to win fame.”

-Walter Kirchner, historian-Walter Kirchner, historian

MercantilismMercantilism

►an economic theory that there is a an economic theory that there is a fixed amount of wealth in the world fixed amount of wealth in the world and that a nation's prosperity depends and that a nation's prosperity depends on its success in accumulating wealth on its success in accumulating wealth by exporting more than it imports.by exporting more than it imports.

BullionismBullionism

► the monetary policy of mercantilism, which defines wealth by the monetary policy of mercantilism, which defines wealth by the amount of precious metals (bullion, i.e. gold or silver) in the amount of precious metals (bullion, i.e. gold or silver) in order to maintain a “favourable balance of trade” in the home order to maintain a “favourable balance of trade” in the home country.country.

Favourable Balance of TradeFavourable Balance of Trade

►When a country’s exports (materials When a country’s exports (materials they ship out) exceed their imports they ship out) exceed their imports (materials they ship in).(materials they ship in).

►European nations of the 17th-19th European nations of the 17th-19th centuries attempted to produce a centuries attempted to produce a favourable balance of trade, through favourable balance of trade, through acquisition and development of acquisition and development of colonies as exclusive markets and colonies as exclusive markets and sources of raw materials.sources of raw materials.

Read Article: The Old Read Article: The Old MercantilismMercantilism

Hart, Michael. Hart, Michael. A trading nation: Canadian trade policy from A trading nation: Canadian trade policy from colonialism to globalizationcolonialism to globalization. UBCPress, Vancouver. 2002.. UBCPress, Vancouver. 2002.

ColonizationColonization

►An economic system in which a An economic system in which a dominant “mother country” maintains dominant “mother country” maintains control over the direction, control over the direction, organization, capital, investment, organization, capital, investment, technology, and manufactured technology, and manufactured products of the dependant colony products of the dependant colony which in turn supplies raw materials, which in turn supplies raw materials, agricultural products, and cheap agricultural products, and cheap labour.labour.

ABORIGINAL PEOPLE EUROPEANS

European technology/ tools and weapons- They became more dependant on manufactured goods and abandoned many of their traditional ways of doing things

Competition and hostilities among Aboriginal societies because of competition to trade (fur) with Europeans. Traditional economies could not be maintained.

European diseases- measles, influenza, smallpox. No immunity existed for these, and the Aboriginal people began to die. Example- between 1634 and 1640, imported diseases eliminated half of the Huron Population.

New food crops- beans, corn, potatoes, etc.

Demand for tobacco and sugar cane- a huge demand developed

Economic growth- In part due to the slave trade that developed

Huge economic impact and growth in Europe because of the colonies and the mercantile system transformed Europe into a capitalist society that was controlled by a global trading network

The Impact of ContactThe Impact of Contact