1. Objectives
Students will be able to explain the political and economics developments that occurred during the Early Modern Period.

2. The World Economy (15th – 18th Centuries )

3. I. A More Connected World
The World Economy
Truly began with European exploration and conquest of the New World
International exchange of manufactured goods, foods, diseases, and traditions
Included Atlantic, Pacific, and Indian Oceans
Extensive use of silver as method of exchange
A major power shift that placed Europeans squarely in the center of the world

4. II. European Maritime Dominance
Europeans initially limited by poor technologies, fear, and lack of knowledge
Other societies (Vikings, Chinese, Muslims) had already surpassed Western Europe in establishing sea trade
Changes
Wealthy upper class demanded imported goods
Technological improvements
Better sailing ships for long distances, hauling cargo/weapons
Use/improvement of compass
Maps/mapmaking
Development of guns/cannons
Portugal & Spain are first to compete for sea power
Portugal set out to discover new lands/routes to India, mid-1400s
Financed by Prince Henry the Navigator

5. II. continued… Spain sought similar goals Northern Europe
Christopher Columbus thought he had found India (1492)
Ferdinand Magellan sailed across both the Atlantic and Pacific, claimed the Philippines for Spain (1521), first voyage to fully circumnavigate the globe
Northern Europe
16th century – England, France, Holland compete for power
Improvements in boat design (faster, lighter) help lead Dutch (Holland) to dominance in Southeast Asia
France and England battle for North America, South Asia

6. II. continued…
All nations wanted economic gains through the control of resources and the import/export of goods
Nations set up trading companies that were not closely supervised by the home governments
Often acted as independent governments in the areas in which they operated
Laid foundation for colonial dominance in areas like North & South America, South & Southeast Asia
Examples: Dutch East India Co., British East India Co.

7. III. Impact of World Economy
Columbian Exchange
New World foods come to the Old World
SEE MAP FOR EXAMPLES!
New crops + agricultural improvements = pop. growth in Old World
Old World animals to the New World
Disease spread quickly
Native Americans had no resistance to Afro-Eurasian diseases (measles, small pox)
More than 50% of native pop. wiped out in 16th and 17th centuries
Competition among Europeans becomes more prominent

8. 5-Minute Response
Describe the positive and negative consequences of the more connected world that appeared in the late 15th and 16th centuries.

9. IV. Inequality and Imbalance
Europeans come to dominate overall world trade
Chinese, Japanese, Muslim empires slowly loose control/influence
Battle of Lepanto (1571) – Spanish defeated Ottoman Empire, ended any hope of a dominant Muslim trading empire
European core nations developed – many areas of world become dependent on Europeans
Dependent areas produce low-cost goods (precious metals, spices, tobacco, etc.)
Core-nations traded or forcefully acquired goods
Demand for cheap labor leads to slave labor
China, Japan, and Muslim empires resist European influence
Limit contact to exchange of weapons technology, establishment of trading posts

10. V. European Expansion and Colonies
The establishment of colonies gave Europeans a firmer grip on many parts of the world
First American colony established by Spain in Panama, by Vasco de Balboa (1509)
Francisco Pizarro overtook Inca Empire for Spain
Helped cement control of South America
Early colonists out for gold
Gradually develop more structured system based on agricultural settlements and cheap/forced labor
Spain and Portugal controlled most of Latin America (Central & South America), while France and England struggled for control of North America

11. V. Continued… Africa and Asia
Europeans deterred by disease and climate, originally stayed mostly on coasts of Africa, Asia
Cape Colony – established by Dutch (1652) on southern tip of Africa
Boers (farmers) acted as European pioneers in Africa
Eventually, began moving towards inland Africa in search of suitable farmland, resources, and slaves
Philippine and Indonesian Islands in Asia became centers of control for Spain, France, and Holland
India was a battleground between France and England
England would prevail and control India for centuries

12. VI. Impact on Western Europe
Economically, Western Europe grew beyond measure
Began to focus more on manufacturing and exporting (mercantilism)
Dependence on domestic agriculture began to lessen
Politically, the growth of the World Economy had a profound effect on W. Europe
Colonial expansion efforts added to already existing rivalries and tensions, strengthened monarchies
British/Dutch v. Spanish
British v. Dutch
British v. French
Seven Years War ( ) was fought in Europe, India, and N. America
Often called the first world war, ended with Treaty of Paris

13. 5-Minute Response
In the 16th and 17th centuries, the global balance of power was tipped.
What does this mean, and to whom did it tip?
What are some reasons for this tip and what was the impact?

14. Key Vocabulary – Chapter 16
World Economy
Cape of Good Hope
Christopher Columbus
Ferdinand Magellan
Dutch East India Company
British East India Company
Core Nations
Mercantilism
Francisco Pizarro
Vasco de Balboa
Seven Years War
Treaty of Paris (1763)
Cape Colony
Boers