1. Colonial Economics

3. Portuguese Empire (1500s/1600s)

4. Spanish Empire – 1500s-1700s

5. Mercantilism – Fixed Wealth System
A new, designed economic system developed to facilitate
the growth in power of these new, centralizing European states
Europeans in the EME believed there was a ‘fixed’ or certain amount
of wealth / gold in the world, and the goal was to control most of it
Mercantilism was state control of trade in the hopes
of enhancing national power at the expense of rival countries
Example: Britain wants to accumulate as much wealth from trade
as possible at the expense of France, Spain, and the Netherlands
First method: sell more to them (exports) than you buy from them (imports)
Second method: steal or interrupt their trade goods and
colonies while setting up and protecting your own

7. Charter Companies
It was impossible at the time for countries to establish,
develop, protect, and run their colonies and world trade
Taxing citizens for exploration they’d never see or benefit
from would have devastating effects on the mother countries
The solution: official charter companies were commissioned (officially
instructed) by the state (the British, Dutch, or French government)
These companies used joint-stock investment to explore,
build ships, hire soldiers, and establish colonies/plantations
in the name of their mother country
Lastly, these companies actively waged war on one another in the Indian Ocean,
Africa, and the Americas--even as the states themselves were peaceful or allies

9. Charter Companies Continued
These charter companies (Plymouth, Virginia, British East India, London
Company, etc.) were granted rights similar to a small government
With the consent of the mother country (Br/Neth/Sp/etc), they could
Negotiate with local rulers (Africa, India, etc.)
Collect and distribute land
Formulate and administer basic justice (according to mother country laws)
Hire soldiers for trade and colony protection
The mother countries would often try and setup forts and port cities to keep a naval/military
force in the area to protect their colonies and trade (i.e., the Caribbean)
They (especially the British) also hired privateers (pirates) to disrupt others’ trade
Most pirate activity took place around choke points and large currents (the
Caribbean), and resulted in intense competition for trade and transport