Trade in PreIndustrial Societies

1
Trade in Pre-Industrial Societies
2
Review

• China, the apex of pre-industrial societies
• The Mongol Invasions
• The Mongols and the interconnectedness of world
  economies

3
Questions

• How and why did pre-industrial societies restrict
  economic freedom?
• Why did trade play such a small role in the
  pre-industrial economy?
• Why were merchants and trade so crucial for the
  historical development of Eurasia and Africa even
  though trade comprised only a small part of the
  total economy?

4
The Pre-industrial Economy

• Agriculture and wealth
• Problems of transport
• Land ownership
• Labor
• Forced labor
• Ascribed status
• Nepotism
• Consumption vs. investment

5
Trade

• Incentive for specialization
• Incentive for manufacturing
• Incentive for cross-cultural contact
• Trade and technological advancement

6
The Silk Road