Global Impact of the Industrial Revolution

World Trade Boosted Due to massive manufacturing increases in Europe, world trade increased exponentially across all trade networks While there was manufacturing in Europe before the 1800s, China and India were the main producers of goods After 1760, goods from the Americas weren’t just consumed or sold—they were mostly used to produce goods on a MUCH larger scale in Europe (textiles, guns, etc.) This created a LARGE demand for raw materials (cotton, tobacco, metals, etc.) in Europe that colonies (and later new countries) in the Americas could provide As a result, Europe and the US became the world’s largest producers of goods, and the activity of all trade routes increased to bring raw materials to Europe, and to distribute manufactured Euro/American goods

Chart showing the US/Eur passing the world in production (GDP)

Single-Export Economies This large demand for raw materials from the Americas to manufacture in Europe rapidly expanded the already large plantation and hacienda systems It also made colonies economically dependent on selling their exported raw materials to Europeans (examples below) Mexico - precious metals (copper and silver) Peru - guano Brazil - coffee & cocoa Argentina - beef U.S. - cotton/tobacco (until 1870s when the US industrialized ) These goods were either used for production in factories, or to meet the dietary needs of growing urban areas Colonies and new countries like Mexico, Argentina, and Brazil (after their revolutions in the 1820s/1830s) initially benefited from this system

Single Export Continued… Their plantations owners specifically became quite wealthy, selling raw materials to the US and Europe for manufacturing However, their profits were VERY small in comparison to countries selling manufactured goods, and little economic growth occurred (no wealth-creation) Additionally, lower classes were not paid nearly as well as the working classes in Europe and the US, and economic growth was slow or non-existent However, as plantation owners and manufacturers in Europe became more wealthy, they began to demand luxury goods and fine jewelry to show their wealth With the discovery of diamond mines in South Africa, and more precious metals in the Americas, demand for these products raised substantially as US and Europeans attempted to show off their wealth

Major raw material export-based economies/regions

Transcontinental Business Enhanced by the growth of global trade, European and US businesses grew wildly during the 19th century As wealth and the money supply increased, US and European businesses began to sprout up elsewhere in the world and dominate markets Many took root in foreign countries, buying and controlling land to benefit their businesses Examples United Fruit Company (U.S.) bought and controlled land and (somewhat) governments in Latin America for almost a century The Hong Kong and Shanghai Banking Corporation (British) also setup European financial institutions in Asia

Imperialism (exploitation by force) Using their wealth, production, and technological advantages, the US and Europe began to take greater advantage of the world in the 19th century Their goal was one of two options, depending on the region: Acquire territory for raw materials (Africa and Oceania) Acquire territory for new markets to sell US or European manufactured goods (Asia) To do this, Europeans and Americans either took territory and controlled it directly (India), or forced foreign governments to do their bidding (China) The 19th century would see US and Europe taking over or controlling nearly the entire world to take their resources or forcibly sell them their goods