Economic & Political Influence of the New Global Age (1600-1700) Mercantilism & Capitalism.

Economic & Political Influence of the New Global Age

(1600-1700)

Mercantilism & Capitalism

Mercantilism

• European global trade & colonial expansion caused MAJOR ECONOMIC CHANGES

Mercantilism

• Old Economic System Feudal System - based on land ownership & fealty

(loyalty in exchange for protection)

• Economies became more complex Improved navigational technology “discovery” & colonization of new lands Growing merchant class

Mercantilism

• European nations develop a new economic system called MERCANTILISM!!!!

Mercantilism

• Under this new policy governments sought to control & regulate trade in order to create a favorable balance of trade.

• GOALS: Value of exports > value of imports Build supplies of gold & silver for homeland

Mercantilism

• Colonies are important!!! Provide cheap raw materials & resources for

European countries Provide a market for finished goods made in

Europe

Mercantilism

• Europeans controlled trade Require colonies only trade with mother nation Place tarriffs on goods imported from other

nations

CAPTIALISM IS BORN!!!

• Mercantilism was the major economic model in Europe.

• Capitalism is an economic system based upon the private ownership of resources & production TRYING TO MAKE A PROFIT!!!

Capitalism

• Trade was operated through private ownership. Merchants and ship owners took the risks &

enjoyed the PROFITS

Capitalism

• Merchants & ship owners Make up the backbone of the growing

MIDDLE CLASS in European towns and cities Their wealth contributes to the growing

markets in Europe

Capitalism

• Middle class private citizens start PRIVATE BUSINESSES!!!

• This creates a MARKET ECONOMY A system in which individual buyers and

sellers interact exchanging goods & services

Capitalism

• Causes for the birth of Capitalism International trade & colonization Mercantilism Rise of the Middle Class Development of the Market Economy

• All of these causes are critical in the creation & advancement of Capitalism

Global Influence

• European expansion & colonization means… Changes in European political & economic

structure spread to Africa, Asia, & the Americas

Asia

• Before Europeans got to Asia, they were: Highly advanced Prosperous Relatively modern Militarily strong

Asia

• European influence in Asia was prompted by trade

• Asians were treated with more respect because they were viewed as “equals”

• mutually beneficial trade relationships (not one side getting everything while the other is enslaved or taken advantage of)

Asia

Europeans were allowed to build trading posts in port cities BUT DID NOT COLONIZE ASIA.

The Asian economies became more dependent on European trade & markets

Created a prosperous merchant class in Asia that was closely aligned with the Europeans

Asia

Even though Europeans did not colonize Asia, their culture had a profound impact on Asians – especially with the introduction of Christianity by missionaries (started to end Asian isolation)

Because of this influence of Christianity, the many Asian governments limited or closed off trade with the Europeans in a return to isolationism in order to protect their cultures.

Africa

• Economic & Political influence in Africa was based on the Trans-Atlantic Slave Trade.

Triangular Trade

Influence in the Americas

• Major colonization

• Economically driven

• Spain, Portugal, England, France, & the Netherlands

Influence in the Americas

• Spanish & Portuguese Colonies Gold & Silver discovered Plantations

• Native slave labor first. African slave labor later.• Social system where Natives & Africans mistreated

& excluded

Spread Catholicism

Influence in the Americas

• English colonies Plantations- Tobacco, rice, indigo, sugarcane

(Warmer climates) Jamestown Pilgrims - Religious freedom Indentured servants

• Georgia = penal colony (Australia came later)

Influence in the Americas

• France, England, & Dutch did not enslave Native Americans, but did import slaves from Africa

• French Fur-trade Trading post colonies Lose to British in French & Indian War (1754-1763)

French lose influence in Americas

• Dutch Merchants!!! Trading posts Dutch East India Company

Political Styles

• Spain & Portugal Strong central Monarchy “micromanage” colonies

• French & Dutch Allowed more political freedoms

• English Representative Governments

Summarize

• Mercantilism

• Capitalism

• Columbian Exchange

• European influence around the World