Mercantilism

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Mercantilism

• an economic theory that states that the world
  only contained a fixed amount of wealth and that
  to increase a countrys wealth, one country had
  to take some wealth from another
• either

Actual conquest of new lands and resources
Have a higher import export ratio
combination of both
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Favorable Balance of Trade

• Regulated commerce could produce a favorable
  balance of trade.
• In general, tariffs should be high on imported
  manufactured goods and low on imported raw
  material.

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Economics influenced events

• Favorable balance of trade
• Having exports exceed imports
• The theory of mercantilism was a set of
  principles that dominated economic thought in the
  seventeenth century.
• According to mercantilists, the prosperity of a
  nation depended on a large supply of bullion, or
  gold and silver.
• To bring in gold and silver, nations tried to
  have a favorable balance of trade.
• In order to maintain a favorable balance of
  trade, the goods exported must be of greater
  value than those imported.
• The development of colonies and trading posts
  played an important role in mercantilism, since
  they were both sources of raw materials and
  markets for finished goods.

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Mercantilism
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Building of Empires

• Islamic Empires
• Ottoman (land and sea)
• Safavid
• Mughal
• Iberian Peninsula (Sea Empire)
• Spain
• Portugal
• East Asia
• Ming dynasty (early attempts then regional
  control)
• 1644 Manchu (Jurchens) take over China
• Japanese Tokugawa
• Late 1500s and 1600s
• Economic growth of the Dutch
• Rise of the French and English

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Complex issues Global context (CAC)

• Conceptual tools
• Contingency
• Dependent on other developments.
• Other that Developments that occur independently
  in the world and could have taken other
  directions and therefore events and their
  occurance not inevitable or that they do not have
  to correlate
• Vast amounts of silver in Americas and labor
  force from Africa
• Accident
• Events just happen to occur at the same time
  sort of like a comet that occurred at the Battle
  of Hastings
• Also relates to where resources are located
  some countries have their coal supply near a
  river
• Conjuncture combination of events that occur
  independently that then interact to create a
  unique historical moment
• Independent events converge
• Eventually come together

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Because of connections of W. Europe and Asia
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The Columbian Exchange
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Bullionism (gold)

• Bullionism was the belief that the economic
  health of a nation could be measured by the
  amount of precious metal, gold, or silver, which
  it possessed.
• Bullionism dictated a favorable balance of trade.
  
• Each nation tried to achieve economic
  self-sufficiency.
• Those who founded new industries should be
  rewarded by the state.

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New Weapons Technology
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Economic Impact

• Leads to a world economy which was created by the
  Europeans during the late 16th century
• Sea 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.
• Established an international exchange of foods,
  diseases and manufactured products

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Columbus Four Voyages
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Other Voyages of Exploration
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European Exploration
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Mexico Surrenders to Cortés
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The First Spanish Conquests
The Incas
vs.
Francisco Pizarro
Atahualpa
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The Treaty of Tordesillas, 1494 The Popes
Line of Demarcation
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Negative Impact of Europeans

• The colonization of the Americas by the Spanish
  drastically impacted the native civilizations
• Forced labor, starvation and especially disease
  took a toll on their lives
• Ravaged by smallpox measles and typhus
• Hispaniola population of 250,000 1492 by 1538
  only 500 survived
• MexoAmerican population dropped from 25 million
  in 1519 to 1 million in 1630
• Also changed were the social and political
  structures of the peoples
• They were replaced with European styles of
  governance and religious systems and new
  languages using new schools and hospitals
  organized by the structure of the church
  organized by parish and missions

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Trans-Atlantic Slave Trade
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Slave Trade

• Existed in Africa before the coming of the
  Europeans.
• Portuguese replaced European slaves with
  Africans.
• Sugar cane sugar plantations.
• First boatload of African slaves brought by the
  Spanish in 1518.
• 275,000 enslaved Africans exportedto other
  countries.
• Between 16th thru 19th century (400 years) about
  10 million Africans shipped to the Americas.

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Impact on Africa

• Hardest hit was Benin which was a creative and
  brilliant society in the 16th century their
  population declined and they lost their faith in
  their gods and human sacrifice increased
• Taken first were the strongest young men and
  women
• Political unity within tribes such as the Ibo and
  the Ashanti remained but these were the tribes
  which contributed a large number of slaves,
  mostly by raiding other tribes
• Trade routes shifted to the coast and away from
  the subSaharan trade weakening the strong and
  influential Songhai Empire
• There was some spread of Christianity which later
  comes into conflict with Islam, religious wars
  which draw in many Africans

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Slave Ship
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Coffin position below deck during the Middle
Passage
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New Patterns of World Trade
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New Colonial Rivals (slave trade)
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Slave Trade
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Zheng Hes
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Zheng He
440 feet long Compared to 75 feet long
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Ming withdrew

• Concerned about new philosophies of the west
• Imports
• New Agriculture
• Cotton, potatoes, maize
• The Mexican Dollar
• Spanish silver pesos
• Eyeglasses
• Banned ship building and withdrew treasure
  expeditions

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Triangle Trade
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Middle Passage
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Inter-related Systems late 1400s to early 1700s

• The goal of a the nation was to become self
  sufficient in order to be able to determine your
  own destiny
• Beginning idea of nation-state
• The result of their actions was
• Growth of empires
• Hegemony dominance of one group over another
• With or without force
• Either economic control, military control,
  cultural preferences such as religion
• Culture accepted as dominate (Early River
  Valleys, Sparta, Zhou, Medici, Saxons, Spanish
  Portuguese in Americas, Russia and Balkan area
  between 1700 and fall of Soviet Union, British
  Victorians in Africa and South Asia, America post
  World War II)
• Needed new resources
• Had to control the shipping and land trade routes

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Transition from one dominate family of rulers
that inherited the position to political
ideologies and parliamentary processes

• First came centralization
• As monarchs (kings, emperors, sultans, khans,
  caliphs, Raja and whether theocratic or emerging
  parliamentary and anywhere in between) began to
  centralize their empires, they realized the need
  to be self-sufficient.
• Then came empires to maintain their position
• As their territories grew they needed growing
  systems to control them which included a methods
  to control the aristocracy (by birth and
  inheritance) and a new type of aristocracy

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The Colonial Class System
Peninsulares
Creoles
Mestizos
Mulattos
Native Indians
Black Slaves
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Treasuresfrom the Americas!
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Fleets

• Sea 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.

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Effects and Results of Methods of trade

• Sea Empire vs. Land Empires
• Ships and navigation
• Protection of high seas
• Port development
• New uses of gunpowder
• Empires that are able to adhere to these
  principles were able to dominate
• England
• Dutch had economic empire
• Spanish Portuguese (Iberian Empires)
• Ottoman
• Didnt have the wood for ships so naval power was
  issue
• Ming
• Hai jin edict halts the production of ships
• Concern about outside contact and the push of the
  Mongolians in north

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Dutch Economic Empire
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Northern Renaissance Sampling Officials of the
Drapers Guild Rembrandt - 1662
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Dutch East India Company, 1602
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Dutch Ship in NagasakiLate 18c
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Scientific Revolution René Descartes
The right environment - French philosopher but
lived in Leiden from 1628 to 1649.
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Anton van Leeuwenhoek The Microscope the
Discovery of Micro-Organisms
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The Spanish NetherlandsUnion of Utrecht, 1579
The United Provinces still recognized Spanish
rule, but, in 1581, they declared their
independence.
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Political and Economic Conflicts in Europe carry
to rest of world