Ms. Sheets University High School CHAPTER 16: THE WORLD ECONOMY.

Ms. SheetsUniversity High School

CHAPTER 16: THE WORLD ECONOMY

Europeans were looking for a trade route to the East by sea.

Belief that the world was flat and sea travel may lead to falling off the earth

Problems: fear of Ottoman Empire’s strength; lack of gold to pay for imports from Asia; ignorant of wider world

THE WEST’S FIRST OUTREACH: MARITIME POWER

Europeans developed round-hulled sailing ships

Could sail AtlanticCarry heavy armaments

Improved compass, map-making

Advanced explosivesDevelop first guns

and cannons

NEW TECHNOLOGY: A KEY TO POWER

Portugal led in navigation Discovery, destruction

to Muslim world, wealthHenry the Navigator

organized expeditions along the coast of Africa, islands

1498- Vasco de Gama reached India, sailed around the Cape of Good Cope

De Gama’s success led to other expeditions: Brazil, Mozambique, Indonesia, Japan

PORTUGAL AND SPAIN LEAD

Portugal claims parts of African coast and parts of Brazil, India

For Spain, Christopher Columbus reached the Americas, thought he was in India

1519-1521 Spaniard Ferdinand Magellan sailed around the world

Spain claims Mexico, parts of South America, Florida

PORTUGAL AND SPAIN LEAD

British set up colonies in North America, China, India

Tried to find an Arctic route to East

Dutch set up colonies in southeastern Asian islands, Sri Lanka, south Africa

French set up colonies in mid-western, southern US, Canada

Dutch East India Company

NORTHERN EUROPEAN EXPEDITIONS

Columbus’ Expeditions

Voyage 1   : August 3, 1492 to March 15, 1493 taking a total of 224 days; A total of 94 days in the New World; Purpose of Trip:searching for wealth and self-enrichment.

 Voyage 2:   251493Leaves Spain September , . Arrives in "New World" 1 1 1 1 1 1111111 11 11.10,14961 1 ,14 9 6 .

ip: Colonization.

Voyage 3    : Leaves Spain May 30, 1498 . Arrives July 31, 1498 at Trinidad in Lesser Antilles . Leaves in October of 1500 departs Hispanola and arrives in Spain in November 1500

 4Voyage :    111502 191502LeavesSpainMay , onhisfourthandfinalvoyage.ArrivesinHispaniolaJune , . Leaves Hi sponal a on 12150September , 2 and Arrives Spain in November 7 , 1 5 0 2 .

The Europeans had a choice, according to Fernand Braudel, to: Colonize America To make use of de

Gama’s trade route into Asia

The Treaty of Tordesillas -

The world was divided between Spain and Portugal at the meridian running 600 kilometers to the west of the Cape Verde Islands.

Columbian Exchange Food/Plants

To the new world: peas, tea, rice, sugarcane, wheat, lettuce, oat, coffee, citrus, apples, bananas, garlic, onion, opium

To the old world: potatoes, tomatoes, corn, vanilla, rubber, cacao, avocado, tobacco, pumpkin, chicle, peanut, cashews

Animals To the new world: horses, goat, pig, sheep, cow, chicken,

camel, bat, bees To the old world: turkey, llama, alpaca, guinea pig

Disease To the new world: plague, chicken pox, cholera, flu,

leprosy, malaria, measles, smallpox, typhoid, yellow fever To the old world: syphilis, hepatitis

TOWARD A WORLD ECONOMY

What does this graph show?

How can we explain this trend?

What were the repercussions (effects) of this de-population?

Smallpox and measles were the most devastating diseases to New World peoples.

Between 50-80% of populations died

Entire island populations wiped out

30% of foods in the world today came from the New World

Some concerns: rumors that American food spread plague, not condoned in Bible

DEVASTATION AND CONSEQUENCES

Muslim traders remained active along the east African coast and Middle East

Western Europe dominated oceanic shipping; increased European profit

1571- Battle of Lepanto, Spanish fleet defeats Ottoman fleet

European controlled ports in Africa, Indian Ocean

Mostly ports, not inland territory

Western enclaves in existing cities

THE WEST’S COMMERCIAL OUTREACH

Spain lacked a good banking system

Could not support a full commercial surge in trade

Western Europe expanded manufacturing

Mercantilism Prosperity of a nation

is dependent upon its capital

Should export more than import

Human labor was vital to producing low-cost goods

IMBALANCES IN WORLD TRADE

Coercive labor practices Population loss from

disease causes increase in imported slave labor in New World

Estate agriculture (peasants forced into labor without legal freedom to leave)

China benefited from the world economy but participated less than Europe did

Russia was isolated; traded with nomadic societies

Beyond slave trade, much of Africa untouched

INTERNATIONAL INEQUALITY

South America, West Indies, parts of North America and some regions of west Africa were being depended on by Europe

Eastern Europe brought into the world economy (Prussia, Poland, Russia)

1600’s- Mughal Empire of India begins to fall apart

British and French East India Companies increased roles in international trade and administration

THE EXPANSIONIST TREND

Spain colonized the Americas first. Cuba, Jamaica, Hispaniola, Puerto Rico

1509 CE- Vasco de Balboa establishes a colony in Panama

1502 CE- Francisco Pizarro settled in Hispaniola, moves to Panama

1528 CE- Pizarro attacked the Incan empire and took over with a capital in Lima

Loose colonial administrations, then more formal administrations as agricultural settlements were established

COLONIAL EXPANSION

English colonies along the Atlantic received religious refugees Calvinists

France developed a substantial settlement of about 55,000 settlers by 1755

North America- native groups pushed westward because of settled agriculture Colonists did not combine with

them, unlike in L. Am.By 1700’s, 23% of population

of southern colonies were of African origin

BRITISH AND FRENCH NORTH AMERICA

The Dutch

The riches of the New World brought other countries to the New World and to Asia Piet Heyn and the Mexican Silver Fleet in 1628 Pieter Dirckszn arrives at Bantam beginning 350 years of Dutch presence in Indonesia. Dutch East India Company (VOC) – first multinational company (sold shares on the Amsterdam (monopoly of

trade in Asia and administered justice and defense) 1602 British East India Company (1600) focused on India and China

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24

The first BIG Corporation

The Dutch East India Company (Vereenigde Oost-Indische Compagnie or VOC in Dutch, literally "United East Indian Company") was a chartered company established in 1602, when the States-General of the Netherlands granted it a 21-year monopoly to carry out colonial activities in Asia. It was the first multinational corporation in the world and the first company to issue stock.[1] It was also arguably the world's first megacorporation, possessing quasi-governmental powers, including the ability to wage war, imprison and execute convicts,[2] negotiate treaties, coin money, and establish colonies.[3

The Dutch

VOC was the most powerful enterprise in the 17th century

Controlled the Indonesian archipelago and controlled the Moluccas (spice trade)

Trading posts in India, Formosa, Persia, Siam, Indochina, and Japan (Nagasaki)

The VOC founded a colony in South Africa! In the West, the Dutch, under the control of WIC

took control of Brazil briefly, and bought Manhattan from the Indians for $60!

They gave it to the English in the Peace of Breda in exchange for Suriname

Mexican Silver Fleet – 1628 the Dutch captured 11 milliondollars worth of the Spanish.

The Effects of the Europeans on the Americas

Europeans set up small ports on African coast

Generally did not go inland because of disease, climate, geography

Negotiate with African kings and merchants

Exception: 1652, Cape Colony of the Dutch

Coastal station to supply ships bound for Asia

British and French struggled to control India after weakening of Mughal Empire

British will take over as colonists after defeating French in several battles

AFRICAN/ASIAN COASTAL TRADING

Colonial rivalries England and Holland

turn on Spain Dutch fight English Britain and France

fight in Seven Years War

Profits from colonies brought in wealth and capital

Slavery and serfdom spread

World economy brings benefits to many

COLONIAL EXPANSION

The 18th Century

The Seven Years War (1756-1763) Ended French Colonial expansion in the Americas. Ended French rule in India Canada and North America became for the most part English, dominated by the

English language and culture. North America became settlement colonies.

Proclamation of 1763 – treaty with the Indians

Asia in the 18th Century

No settlement colonies Distance was far greater to

travel Environment was much

different, North American climate was similar to the European climate.

Because the indigenous people of North America and Australia were exterminated, the new lands could be repopulated. China offered no such possibilities.