1. From Barter to Globalization A History of Trade 1.Merchant economies of early civilizations 2.Self-sufficient economies of the Middle Ages 3.Global economies of the Early Modern Era

2. What is an ECONOMY? A system in which people make, trade, buy and sell goods and services. In a strong economy, the society produces and distributes many goods and services. In a weak economy, the society struggles to produce and distribute goods and services.

3. What does society need in order to produce goods and services? A strong INFRASTRUCTURE helps an economy produce many goods and services. – Education systems give workers skills. – Health systems keep workers healthy. – Tools and technology help workers make goods. – Buildings provide space for production.

4. What does society need in order to distribute goods and services? A strong INFRASTRUCTURE helps an economy distribute goods and services. – Transportation systems provide roads, bridges, and ships to carry goods and services. – Communication systems help traders, buyers, and sellers decide what goods and services to exchange.

5. Building a strong infrastructure Farmers grow a food surplus. Many people in society do not need to farm. Non-farmers specialize in different jobs. – Metalworkers, builders, scientists, teachers, doctors, priests, weavers, engineers, traders, etc. More specialists = stronger infrastructure

6. Economy: Early Civilizations (3000 bce – 500 ce) How did early civilizations produce goods? – Agriculture: Farming and domestication – Cottage Industry: Making goods at home How did early civilizations distribute goods? – Markets: People exchange goods in city markets – Barter: Exchanging goods for goods – Trade: Merchants carry goods to other societies

7. Economy: Early Civilizations (3000 bce – 500 ce) BARTERING

8. “Carriers of Civilization” – Ancient merchants (traders) carried goods from one civilization to the next. Ancient Mediterranean traders – The EGYPTIANS – The PHOENICIANS – The GREEKS – The ROMANS Economy: Early Civilizations (3000 bce – 500 ce)

9. Why were the civilizations of Egypt, Phoenicia, Greece, and Rome able to develop successful trading economies? Economy: Early Civilizations (3000 bce – 500 ce)

11. The SILK ROAD – Connected the markets of Europe and Asia

12. Economy: Medieval Societies (500 - 1400) Decline of trade – For centuries the government of the Roman Empire placed soldiers along major trade routes in order to protect merchants. Merchants needed protection from violent tribes that raided the trade routes. When the Roman government collapsed in 476, the trade routes became unsafe. As a result, many economies in Europe turned away from trade. Economies began to focus more on self-sufficient manor systems.

13. Economy: Medieval Societies (500 - 1400) Self-sufficient manor systems – Self-sufficient: Do everything yourself. Self-sufficient farms grow their own food. Self-sufficient businesses use their own resources. – Manor system: Economy of the Middle Ages. During the Middle Ages (500 – 1400), rich and poor people lived on large estates called manors. Each manor included farmland, cottages for industry (making goods like shoes, weapons, or furniture), a church, and living quarters. The manor was self- sufficient. It produced everything it needed.

14. Economy: Medieval Societies (500 - 1400) What do you learn about the manor system from these images?

15. Economy: Medieval Societies (500 - 1400) Background: Rise of the manor system – Weak kings ruled Europe after the fall of Rome. – The kings gave land to wealthy LORDS. – Each Lord promised to be loyal to his King. – The Lord divided the land into estates called FIEFS. – The Lord gave fiefs to loyal VASSALS (lesser lords). – Vassals promised to give the Lord whatever he asked for. – Most vassals served as KNIGHTS in the Lord’s army. – Peasant SERFS worked on the manor (fields and shops). – Upper class lords and lower class serfs all lived on manors.

16. Economy: Medieval Societies (500 - 1400)

17. From self-sufficiency to globalization (Stage I: 1400 – 1800) GLOBALIZATION is a process that connects foreign economies through communication and the exchange (trade) of goods and services.

18. From self-sufficiency to globalization (Stage I: 1400 – 1800) Background: Collapse of the manor system – During the High Middle Ages (1000 – 1400), many serfs and vassals left the manors to fight in the Crusades. The Crusades were holy wars between Christians and Muslims. Both sides fought for control of the holy city of Jerusalem. Many of Europe’s Christian Crusaders became interested in the goods they discovered in the Middle East. When they finished their military service, they decided to become merchants. They collected silks and spices, travelled back to Western Europe, and became traders. Because they did not return to work for the Lords, the manor system died. Trade was reborn!

19. From self-sufficiency to globalization (Stage I: 1400 – 1800) A new middle class – Trade made ex-serfs rich. – Merchants: The urban middle class of Europe Inspiring stories of wealth – Traders were inspired by the stories of MARCO POLO and the wealthy markets of Asia. Marco Polo was a famous merchant from Italy. His trips to Central Asia and the Far East (China) in the 1200s inspired other traders (and countries) to find new routes to the markets of Asia.

20. Marco Polo

21. From self-sufficiency to globalization (Stage I: 1400 – 1800) Globalization, stage I – Countries send explorers to foreign lands! – Portugal and Spain lead the way Portuguese explorers (like Bartholomew Dias and Vasco de Gama) set up markets in Africa and Asia. Spain hires Christopher Columbus to sail across the Atlantic Ocean in order to get to China. Columbus arrives in the Americas instead. England, France, and the Netherlands begin sending explorers to the New World (Americas) also.

22. From self-sufficiency to globalization (Stage I: 1400 – 1800)

23. Columbian Exchange – Goods, ideas, diseases are exchanged between the Old World & New World.

24. From self-sufficiency to globalization (Stage I: 1400 – 1800) China gets involved. – The Ming Dynasty sent explorer ZHENG HE to foreign lands. – The Chinese economy moved from self- sufficiency to globalization (trade).

25. COMING UP… More globalization – Stage I: Age of Exploration (1400 - 1800) Countries : Kings send merchants and explorers to exchange goods and services with foreign countries. – Stage II: Age of Industry (1800 - 2000) Companies : Business owners set up factories and market connections in foreign countries. – Stage II: Age of Technology (2000 - present) Individuals: Individuals buy, sell, trade, and communicate with one another in foreign countries (using modern Internet technology).