Ch. 17: The World Economy

West’s First Outreach Europeans more aware of outside world Crusades Contact w/ Mongol Empire European upper classes desired imports Spices, etc. Launched more attempts to expand Late 13th century

New Technology 15th Century Deep-draft, round hulled ships (caravel) Able to sail Atlantic Ocean Improved metal work techniques Better armaments & weapons (gunpowder) Compass, better mapmaking = improved navigation

Portugal and Spain Initiative came from Portugal The Nobel Prince Henry the Navigator leads explorations for: Spread of Christianity Acquiring wealth Spain followed Portugal’s example Vasco de Gama reaches India in 1497 1514 = Indonesia and China 1542 = Japan Columbus reaches Americas in 1492 Portugal claims Brazil Spain claims Philippines in 1519

Northern European Expeditions 16th century = Britain, Holland, France begin to dominate expeditions Improved design of ships was key advantage French establish colonies in Canada British establish colonies in N. America Dutch create colonies in Indonesia, challenging Portugal Dutch & British traders create chartered companies (ex., British East India Co.) These powerful merchant groups acted like independent political entities

The New World Economy Europe’s new maritime activity had 3 major consequences for world history: New exchanges of food, disease, manufactured products Forming a more inclusive world economy Opening parts of the world to Western colonization

The Columbian Exchange Disease: The major European contribution Native Americans/Polynesians lacked natural immunities Smallpox & Measles Devastated native populations People: Americas, Europe formed new populations Based on own peoples and importation of African slaves New Crops, Food, and Animals: New World Crops spread rapidly Corn, potatoes to Europe caused a population spike European/Asian animals (like the horse) to New World

Western Trade Asian shipping continued in China / Japan Muslim traders dominated along coast of E. Africa Turks active in E. Mediterranean Mercantilism protected home markets & supported exports Outside of Europe, areas became dependent on world economy Produced and supplied low-cost raw materials Received manufactured items from Europe in return

Systems of Inequality Rise of core and dependent economic zones African slave traders became wealthy Peasants in all areas remained untouched by international markets Dependence on world economy helped form a coercive labor system

Others Left Out Huge world areas remained outside of world economy East Asia Did not need European products China Uninterested, powerful on its own Japan Early openness quickly ended Became isolationist after interest in gunpowder left India, Ottomans, Persia All allowed minimal trade, concentrated on internal development Russia, non-slave trading Africa Outside the international economic ring

Colonial Expansion & The Americas Colonies emerged in Latin America, Caribbean, N. America Smaller colonies present in Africa and Asia Spain colonizes most of the Americas Conquered the Aztecs and Incas Ruthlessly sought gold N. Europeans begin colonization of Americas in early 17th century

Spanish and Portuguese Claims, by 1550 CE

British and French N. America Types of early British colonies: Religious Calvinist refugees – New England Huge land grants to people of influence (William Penn) French colonies in Canada New France = Quebec British take control of Canada in 1764 after the Seven Years War (known in the U.S. as the ‘French-Indian War’) Treaty of Paris in 1763 ends the war N. America not as valuable (at first) as W. Indies, Asian colonies, Latin America

Africa and Asia: Coastal Trading Stations No colonizing Africa because of climate, disease, non-navigable rivers Europeans content to have fortresses on coast European impact locations: Angola (Portugal), Cape Colony (Dutch), Philippines (Spain), Indonesia (Dutch) Fall of India Mughal Empire weakening 17th century French defeat in 7 years war British controlled, but Mughal Empire still existed

British, French, Portuguese, Dutch, and Spanish colonial holdings

Impact on Western Europe Economically – pushed further industrial revolution and new technologies Political – colonial rivalries create national conflict in Europe New products change lifestyles

Effects of a New World Order Slave labor systems affect E. Europe, Latin America, W. Africa New foods, societies could now survive, prosper Individual merchants, landowners status improved China prospered from silver income

Global Connections: The World Economy and the World Europe’s economy, military, government changed Reactions to Europe’s rise Sit back and watch passively in awe Consciously isolate self Blended European ideas with local customs