1. Europeans in the Indies

2. Mongol Empire Muslim Empire Chines e Empire Russian Empire The collapse of Mongol rule in Asia, starting in the 1300s, led to the rise of large, centrally governed states. The Muslim Empire in the South, the Chinese Empire in the East, and the newly emerging Russian Empire in the North had much to gain from trade and helped to keep Asia’s overland trade routes secure.

3. During this same time period, European states pioneered the sea routes around Africa and extended sea routes to China. For the first time in history, Europe, Africa, Asia, and the Americas were connected by a global trading network.

4. The great powers of Asia focused on expanding their land-based empires.

5. While the empires in Asia did take part in some sea trade, they never claimed any ownership over the seas.

6. In contrast, European explorers claimed as much land as they could for their homeland. In 1499, Vasco de Game laid claim to the entirety of the Indian Ocean for Portugal.

7. Portugal’s main goal was to sail to the Indies, trade for spices and other luxury goods, and sail back home. The problem, however, was that Asia did not need or want most European goods. Instead of exchanging products, the Europeans would have to pay for Asian goods with money – mainly silver.

8. To conduct trade, Portuguese merchants needed land bases and often used force to get them. They used these forts to protect their trade and soondominated shipping in the Indian Ocean.

9. European Model of Expansion 1.Relied on superior ships, armed with gunpowder weapons, to establish land bases and control the seas. 2.At the land bases they established trading posts, called factories, which managed trade and finances in the region. 3.Built fortresses to protect their factories and the small colonies that arose nearby.

10. By 1600, Portugal has bases scattered from East Africa to Japan. The only other European state competing with the Portuguese was Spain. A little bit later, the Dutch and English, by applying the same model of expansion, would nearly eliminate Portugal from the Asian trade.

11. The English and the Dutch each formed private companies that were authorized by the royal government to conduct trade with Asia. This was a merging between a monarch’s political authority and private capitalist ventures.

12. The name of each company was the East India Company. The Dutch used violence and force to gain control of these trade routes and establish bases. They brought in slaves to do the brutal labor. The English tried to obtain permission at first and focused their attention on trade, with specifically with India.

13. In the late 1700s, the British took control of India and absorbed it into its colonial empire.

14. In the 1700s, European demand for spices fell, which really hurt the Dutch East India Company’s profits as well as their trading power in Asia. The demand for Indian textiles, Chinese tea, and other goods increased. Being that the British controlled most of these areas, Great Britain now dominated the Asian trade.

15. Nations accumulated wealth through trade, which also made them stronger. For this reason, governments established merchant-friendly policies. Governments would begin to encourage and assist private enterprise.

16. Mercantilism The intense economic competition between European states to obtain the greatest amount of wealth led to…. Mercantilism - an economic philosophy that favored self-sufficiency, called for stockpiling gold and silver, encouraged exports, and discouraged imports.

17. John Locke “Riches do not consist in having more Gold and Silver, but in having more in proportion, than the rest of the world, or than our Neighbors,…who sharing the Gold and Silver of the World in a less proportion, lack the means of Plenty and Power, and so are Poorer.” -John Locke, 1691 What does this mean?

18. To increase national wealth, governments allied themselves with businesses. The founded colonies to gain resources so that industries had raw materials to make finished goods that could be sold. They encouraged exporting goods to be sold, which increased wealth. They discouraged importing goods to be bought, which decreased wealth.

19. Mercantilism laid the foundation for capitalism, which is an economic system in which all resources are privately owned and markets determine how those resources are distributed. Several important features of capitalism appeared during this time: 1.Profit motive 2.Accumulation of capital 3.Financial innovation

20. Banks loaned money to entrepreneurs, who were people willing to take the risks of starting and running a business. Entrepreneurs launched the East India Company Both the English and Dutch East India Companies were founded as joint-stock companies. These companies raised capital by selling stock, or shares of ownership in the company. The owners held the stock jointly.

21. Major Shift in Demand In the late 1600s and early 1700s, consumer demand shifted away from luxury goods. Instead, Europeans imported more sugar and tobacco from the Americas, and tea and textiles from Asia. One of the greatest goods in demand became COTTON

22. England will begin to become the dominant European empire due to its colonies and the increased demand for cotton. England’s textile industry, bolstered by the mechanizing of spinning and weaving, will be the driving force behind the Industrial Revolution.

23. T h e E n d