1) Discuss the Impact of the Commercial Revolution 2) Notes on the Commercial Revolution 3) Review for Connecting Hemispheres Exam EXAM NEXT CLASS.

World History Nov. 28th / 29th

TODAY:

1) Discuss the Impact of the Commercial Revolution

2) Notes on the Commercial Revolution

3) Review for Connecting Hemispheres Exam

EXAM NEXT CLASS

COMMERCIAL REVOLUTION

(16th century: approx. 1500-1700)

What is the Commercial Revolution?

“The shift from a town-centered economy to a nation-centered economy.”

The emergence of commercial capitalism

Three-Field System

BEFORE AFTER

FallowFarm

Farm

Fallow

Farm

Fallow means left unfarmed

The Three-Field System

Could farmers yield more crops using half of their land or two-thirds of their land?

The Commercial Revolution

Causes•population growth: 60 million in 1400; 75 million in 1500; 100 million in 1600•“price revolution”: (long slow upward trend); increased food prices, increased volume of money, influx of gold & silver from the New World.•rise of capitalism (laissez-faire):entrepreneurs; bourgeoisie at the forefront

Effects•Imports of silver from the New World and population growth led to inflation – effected the poor and peasants the most.•Landowners, merchants, artisans grow rich – reinvest money in exploration ventures.•Population growth and enclosure pushed people of the land into cities•Establishment of poor relief

The Guild

A group of individuals working together to improve economic and social conditions for its members Blacksmiths Wine makers Bakers Artisans

How to become a Master

Mercantilism

• an economic theory that states that the world only contained a fixed amount of wealth and that to increase a countries wealth, one country had to take some wealth from another either through having a higher import/export ratio or in actual conquest of new lands and resources.

Mercantilism, Purpose of Colonies

MERCANTILISM: NATIONS SOUGHT SELF-SUFFICIENT ECONOMY; “BULLIONISM”

Mercantilism in History

Between the 15th and the 18th centuries in Europe, powerful states were created and were dedicated to the pursuit of economic power and wealth.Governments organized their then-limited capabilities to increase the wealth of the country.Mercantilist governments promoted…

exports over importsindustrialization over agriculturethe protection of domestic production against competition from importsthe intervention in trade to promote domestic employment

Mercantilism LeadsTo FleetsSea power was necessary to control foreign markets. A powerful merchant fleet would obviate the necessity of using the ships of another nation and becoming dependent on foreign assistance. In addition, a fleet in being could add to a nation's prestige and military power.

Fleets Lead to:Competition between nationsNavigation and other Trade ActsAvoidance of tariffsNeed for large labor forceSlave TradeConflict on the seasLarger Ships more maneuverable ships

England vs. SpainEngland was late in joining the competition for Asian trade, but England also reached out. In the New World England and Spain were bound to come in conflict. England had participated little in the process of exploration yet insisted that its occupation provided a legitimate claim to title. Of course, Spain claimed that discovery provided the claim to title. The Spanish not only desired to monopolize the trade of their colonies, but the also wished to prevent the English from establishing a foothold which would constitute a base for penetration of Spanish territory. Generally speaking, the English disliked the Spanish.

New Colonial Rivals (slave trade)New Colonial Rivals (slave trade)

Trans-Atlantic Slave TradeTrans-Atlantic Slave Trade

“Coffin” Position Below Deck“Coffin” Position Below Deck

Slave ShipSlave Ship

• Individuals and corporations invest money - using their capital, not labor, to make more money

• Production, distribution, and exchange of goods are controlled by private individuals or corporations, not by the state

• Prices are set by supply and demand in the marketplace, not by the government

The Rise of Capitalism

Banking

First major banking firms being in northern Italy (Medici)

Northern Europe: Fugger family of

Augsburg Jakob Fugger

(1459-1525) Financed Charles V.

New Kinds of Business

Banking expanded to Antwerp in 16th c., Amsterdam in 17th c.

chartered companies: state provided monopolies in certain area (British East India Company, Dutch East India Company), governments profited from ventures.

joint-stock companies: investors pooled resources for common purpose (forerunner of modern corporation), reduced risk.

More Results of the Revolution stock markets: e.g., Bourse in

Germany “Putting-out” Industry –cottage

industries grow. new industries: cloth production,

mining, printing, book trade, shipbuilding, cannons & muskets

consumer goods: rice, sugar, tea, spices

Results of All of This:1) Rise of European

InfluenceAbroad – European

Empires- French/British/

Spanish