The World Economy

New Technology: A Key to Power Sailing ships, compass, mapmaking Development of the Mercator map Guns and cannons- led to European military superiority

Portugal and Spain Lead the Pack Portugal’s rulers drawn by- excitement of discovery, harm to Muslim world, thirst for wealth Prince Henry, the Navigator- builds school in Portugal to teach navigation Bartholomu Dias- around the Cape of Good Hope (southern tip of Africa)- 1488 1498- da Gama reached India Spain, meanwhile, began claiming the Americas (1492- Columbus’s voyage) Treaty of Tordesillas- divides land Spain and Portugal can rightfully claim Magellan- 1519- circumnavigated the world

Northern European Expeditions French explorers in Canada- 1534 British in North America- Jamestown 1607 and further settlement of the east coast Dutch dominated in southeast Asia Dutch, British, French- all establish trading companies, ie. Dutch East India Company The companies had rights to raise armies, coin money, enact treaties

The Columbian Exchange of Food and Disease Diseases like smallpox and measles wiped out about 50% of the Native American population Corn and potatoes help increase world population European and Asian animals like the horse and cattle introduced to New World

The West’s Commercial Outreach Although Muslim trading still very active and commerce in the Middle East strong, Europeans began dominating a great deal of oceanic shipping and getting into trade between other societies Increase in European profits Battle of Lepanto 1571- Spanish defeat Ottomans and end Muslim threat

Imbalances in World Trade Competition within Europe (Spain, England, France, Netherlands) Expanded manufacturing Core nations in the new world system supplemented their growing economic prowess by self-serving political policies, i.e. mercantilism

A System of International Inequality Most area relationships established in late 17th century still exist today Coercive labor systems spread- Dutch East Indies, Americas, 18th century India

How Much in the World Economy? Still, many areas of the world not part of this global system Asia left out by choice (China, Korea, Japan, India, Persia, Ottomans) Africa also untouched largely

The Expansionist Trend European dominance spread to new areas during 17th and 18th centuries British and French merchants strengthen positions in India Eastern Europe exporting grain

European Colonial Holdings

Colonial Expansion The Americas: Loosely Controlled Colonies European advantage- guns, horses, iron weapons Vasco de Balboa- first colony for the Spanish in present-day Panama Francisco Pizarro- conquered the Inca France, Britain, Holland also developed colonies in N. America

British and French North America: Backwater Colonies Dutch in New York area (1664 overtaken by English) but Dutch more attached to Asian colonial holdings Louis XIV in Canada- New France. Strong organization of Catholic church helped Seven Years’ War between France and England(1756-1763)- France lost and England got a lot of France’s New World territories North American products- timber, fur, sugar, tobacco, and cotton European settlers arrived driven by religious dissent, ambition, and other motives Spread of western values facilitated by weak native pop. By 1700 importation of African slaves part of American experience

North America and Western Civilization Most settlers replicated patterns in western Europe, i.e. family unit (but in the Americas children were more important) Western political ideas led them to revolt later on

Africa and Asia: Coastal Trading Stations Europeans only had small holdings in Africa for trade as they were deterred by climate, disease, and non-navigable rivers Portugal sent expeditions into Angola in search of slaves- major disruption Cape Colony by Dutch on Cape of Good Hope (1652) British and French struggle for control of India (late 17th century on) and French eventually lose British East India company advantages: station at Calcutta, more influence on British government European administration limited

Impact on Western Europe Colonial wars and rivalries added to existing hostility between the nation-states Sugar trade expansion Wealth and capital from new profits increased Europe’s commercial character