1. Ch. 17: The World Economy

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

9. 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

10. 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

11. 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

12. 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

13. Spanish and Portuguese Claims, by 1550 CE

14. 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

15. 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

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

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

18. 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

19. 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