1. An Economic History of Europe by Justin Kisieliauskas

2. What's on the news?

3. 1 The making of Europe Europe trades, therefore it is!

4. formation of EuropeEurope

5. What can we learn? The great historical paradox is that despite disruptive political forces Europe remained as a unit of cultural and institutional homogeneity because of strong cohesive forces, of which trade was the most important. Europe was divided by: political and military conflicts But united by: trade

6. Discussion: why did nations form? People group together People settle down Towns From towns to nations? Conquest and greed? Rationality and economics? Culture? Nation (from Latin: natio, "people, tribe, kin, genus, class, flock") - language, traditions, customs (mores), habits (habitus), and ethnicity Jughashvili's National Question: "a nation is not a racial or tribal, but a historically constituted community of people;" "a nation is not a casual or ephemeral conglomeration, but a stable community of people"; "a nation is formed only as a result of lengthy and systematic intercourse, as a result of people living together generation after generation"; and, in its entirety: "a nation is a historically constituted, stable community of people, formed on the basis of a common language, territory, economic life, and psychological make-up manifested in a common culture."

7. Size of nation

8. Size matters? Why?

9. How did the border line form?

10. TRADE Why people trade? With whom people trade? What stimulates trade? Proximity Similarity

11. Roman empire trade routs

12. Gravity force Large economies stimulates and ATTRACTS surrounding economies. Trade transmits: Goods Languages Commercial laws Culture Preferences Technologies etc. Intense trade equalizes economies and forms them into units. This multiplies trade!

13. Columbian exchange

14. Limits of gravity force? Limits of empire?

15. Trade resistance Proximity from core economy Lack of similarity due to: Income Currency Technology Religion Language Culture Preferences Etc.

16. Border effects Border effect as a high transaction cost imposed on trade which is not present in trade within the region or empire which has a common legal and monetary system and language. Border effects reduce trade and therefore maintain the lack of similarity between neighboring economies in the border areas. F.e. Roman pottery Mediterranean trade after Arab conquest Germanic tribes and language

17. The border effect

18. Geo economics brings geo politics: The European Union

19. What does the trade prove?

20. What can we learn? In the past trade has been the cohesive force in a Europe of political and military conflict. Political co-operation in the EU has added a new dimension to Europe. It seems highly unlikely that a military conflict could break out among the former bitter enemies in Europe. At last geo-politics is in tune with geo-economics.

21. Discussion: Will EU expand more?

22. THE SIZE OF COUNTRIES: DOES IT MATTER? Read the text (tiny.cc/mrjk) Make important notes It will be inside your test

23. More about gravity…and have a nice Friday

24. An Economic History of Europe by Justin Kisieliauskas