The Unification of World Trade New Philosophies for New Trade Patterns Mr. Muller

Introduction This chapter discusses: This chapter discusses: The expansion of European interests across the globe Moving from multi-interest, multi-part trade to consolidated markets by 1500 France and England as the dominant powers Note the ways in which economic philosophies and political decisions aided or hindered economic activity Note the ways in which economic philosophies and political decisions aided or hindered economic activity

Introduction European success  development of market capitalism European success  development of market capitalism This freed the traders from governmental restriction even as the Kings realized the benefit of the enormous wealth generated This freed the traders from governmental restriction even as the Kings realized the benefit of the enormous wealth generated

Introduction Note how: Note how: European capitalism is different from business practice in all other parts of the world Why the centralized model used by Spain and Portugal lose out in the end How little Holland and the Dutch became giants in the 1600s Which factors helped France and, especially England achieve global economic power

Remember clearly! It is really all about: It is really all about: Power + Money

Introduction Concludes by examining: Concludes by examining:RussiaChina Japan, and How these countries were effected by the new economic order How these countries were effected by the new economic order

Expansion of Europe and the Birth of Capitalism By 1500, trade and economy had brought the eastern and western hemispheres together By 1500, trade and economy had brought the eastern and western hemispheres together The organization principle was the “ism” of Capital The organization principle was the “ism” of Capital The pursuit of private economic profit through private ownership of wealth and the means to produce wealth The pursuit of private economic profit through private ownership of wealth and the means to produce wealth

Expansion of Europe and the Birth of Capitalism Capitalism’s claim to fame: Individuals to exchange their products and labor in free unregulated markets Free market “worth what paid for” decisions Balance between prices and cost of labor through supply and demand Little place for the Church or King’s restriction—in Europe where King or Church are supreme and with centralized decision- making in the economy, the country will fall from the race for global economic control

Note: Note: Even though capitalists wish a free market, it is okay for the government to aid in the establishment of their success by Military assistance, or Support for money-making projects Eliminating Mercantilism Capitalists and Governments work together to Protect & encourage the capitalist businessmen Collects taxes for the state

Expansion of Europe and the Birth of Capitalism Profound effect on their global neighbors Profound effect on their global neighbors The effort to insure trade supremacy leads to economic denomination by the Europeans, in particular the English as they move from the 1600s to the 1700s and global sovereignty by the late 1800s The effort to insure trade supremacy leads to economic denomination by the Europeans, in particular the English as they move from the 1600s to the 1700s and global sovereignty by the late 1800s The vehicle to success is the creation of the Nation-State  combination of a political state with the emotional sensibility of a collective social identity The vehicle to success is the creation of the Nation-State  combination of a political state with the emotional sensibility of a collective social identity

Protestant Reformation and the Catholic Counter- Reformation Power Breaks The RCC Hold on Society Nation- State

England as The nation of shop- keepers