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Economic Systems and Global Trade (1450-1750)

Apr 15, 2025

Maintenance and Development of Maritime Empires (1450-1750)

Overview

  • Key question: How were Maritime Empires maintained and developed from 1450 to 1750?
  • Major focus on economic systems and strategies used by these empires.

Economic Systems

Mercantilism

  • Dominant economic system in Europe during this period.
  • Definition: State-driven, focused on accumulating mineral wealth (gold and silver) by maintaining favorable trade balances.
  • Goal: Acquire the largest share of wealth ("the biggest piece of the pie").
  • Encouraged competition among nations for limited resources.
  • Emphasized more exports than imports to accumulate wealth.
  • Motivated the establishment and expansion of empires, as colonies provided closed markets for exports.

Joint Stock Companies

  • Definition: Limited liability businesses chartered by the state, funded by investors.
  • Allowed private investment instead of state funding.
  • Created a mutual interdependence between the state and merchants (e.g., trade monopolies, protection).
  • Facilitated empire expansion by enabling merchants to expand influence.

Example: Dutch East India Company

  • Chartered in 1602 by the Dutch state with a monopoly on Indian Ocean trade.
  • Helped Dutch investors become wealthy and expanded Dutch power and influence.
  • French and British created similar companies, leading to rivalries and wars (e.g., Anglo-Dutch War).

Changes and Continuities in Trade

Atlantic System of Trade

  • Emerged post-Columbus, connecting Eastern and Western hemispheres.
  • Key products: Sugar, silver.
    • Sugar: Plantation economies in the Caribbean increased supply and demand.
    • Silver: Extraction from mines in Bolivia and other colonies fueled European and Asian economies.
  • Labor: Coerced labor (indigenous peoples, indentured servants, enslaved Africans).
  • Silver flow and trade monopolies crucial for maintaining this system.

Continuities

  • Regional markets in Afro-Eurasia continued to flourish.
  • Overland routes like the Silk Roads remained under Asian control (Ming, Qing dynasties).
  • Local labor systems (peasant, artisan) persisted, with increased production for global markets.

Social Effects of Global Trade

African Slave Trade

  • Gender imbalance due to a demand for male laborers.
  • Changing family structures, increase in polygyny.
  • Cultural synthesis: Creole languages developed, blending African, European, and sometimes indigenous elements.

Religious and Cultural Impacts

  • Christianity in South America: Spanish and Portuguese aimed to spread Christianity through missionaries.
    • Mixed success, occasionally led to syncretic religion blending indigenous beliefs with Christianity.
    • Missionaries, such as Bartolomé de las Casas, advocated for indigenous rights, leading to limited legislative changes.
  • Enslaved Africans brought native religions, leading to additional cultural blending.

  • Study Tip: Review the role of joint stock companies and mercantilism in empire expansion, the impact of trade on social structures, and the spread of religion in colonial contexts.