1450 CE – 1750 CE1450 CE – 1750 CE

Era of Global Interaction!Era of Global Interaction!

Chapter 16 & World EconomyChapter 16 & World Economy

1

Classical

1450 CE – 1750 CE

Ancient

1750 CE10,000 BCE 1000 BCE

Postclassical

The World in 1400The World in 1400

Middle East in 1400Middle East in 1400

►Loss of trade revenue & Loss of trade revenue & agricultural productivityagricultural productivity Peasants slip into serfdom Turn increasingly toward faith & away

from science for answers

►Abbasid, Mongol, & Byzantine Abbasid, Mongol, & Byzantine collapse creates power collapse creates power vacuumvacuum

Middle East in 1400Middle East in 1400

►Ottomans fill void Ottomans fill void

China in 1400China in 1400

►Ming dynasty initially focuses on Ming dynasty initially focuses on re-establishing borders & influencere-establishing borders & influence Example: Zheng He

China in 1400China in 1400

►Foreign influence ended in favor of Foreign influence ended in favor of internal developmentinternal development Economy, industry, & agriculture Emphasis on tradition & Neo-Confucianism

India in 1400India in 1400

►Timor & Mongol descendants Timor & Mongol descendants led to broad Islamic empire, led to broad Islamic empire, MughalMughal

Europe in 1400Europe in 1400

►Contact & exchange bred curiosityContact & exchange bred curiosity Renaissance fosters spirit of exploring

world Wealth focused in Italian city-states

expanded international trade, banking, art

►Monarchy & commerce Monarchy & commerce strengthening strengthening Reconquista of Spain drives out Muslim

kingdoms

Global ConnectionsGlobal Connections

Muslim trade & Indian Ocean-based tradeMuslim trade & Indian Ocean-based trade↓↓

Mongol moment & land-based tradeMongol moment & land-based trade↓↓

Return of sea trade & Chinese momentReturn of sea trade & Chinese moment↓↓

Leadership shifting toward EuropeLeadership shifting toward Europe

Chinese compass & explosives

Chinese sternpost

rudder

Arab lateen sail

Arab portolan charts & maps

A Shift – Why?• New Technology: Key to Power

•Europe v. China

Technology in Iberia

• New sturdier ships – Needed for ocean travel– Experience in N.Atlantic vs. Med

• Maneuverability – Added a rudder

• Sails– Combined square & lateen sails to advance in

uncooperative winds

Technology in Iberia

• Navigation instruments • Astrolabe / cross staffs• Compass

• Winds & currents

• Volta do mar

European Exploration

Countries (in chronological order)

→

Example territory outside Europe

→

Comparison

A- B- C- D-

A- B- C- D-

1550

1700

Exploration → Truly Global Network

• Result:– Columbian Exchange

• massive swap of people, diseases, plants, & animals b/t New World & Old World upon arrival of Christopher Columbus.

Luxuries → Exploration

• Desire for luxuries helped fuel European exploration– Discovery of New World

European Exploration

Columbian Exchange

Examples:

From Old World From New World

Small PoxHorsesSugarcaneAfricansWheatCotton

PotatoesCornTomatoesTobacco

Columbian Exchange

• Silver– What was the role of silver in the Columbian

Exchange?

The world economy & The world economy & developments in Western Europe developments in Western Europe

are connected!are connected!

Early Modern W. Europe - Pre-Early Modern W. Europe - Pre-TestTest

Early Modern W. Europe - Pre-Early Modern W. Europe - Pre-TestTest

£ Put the following developments in Put the following developments in chronological order & give a brief chronological order & give a brief descriptiondescription

Enlightenment =Enlightenment = Renaissance =Renaissance = Scientific Revolution =Scientific Revolution = Protestant Reformation =Protestant Reformation =

W. Europe’s W. Europe’s Commercial Commercial RevolutionRevolution

W. Europe’s W. Europe’s Commercial Commercial RevolutionRevolution

Commercial RevolutionCommercial RevolutionCommercial RevolutionCommercial Revolution

£ A time of internal economic growth in A time of internal economic growth in W. Europe as it became more trade- W. Europe as it became more trade-basedbased

£ Standard of living improvedStandard of living improved

Economics?Economics?Economics?Economics?

1.1. What is “economics”? What is “economics”?

2.2. What are some basic principles of What are some basic principles of economics?economics?

W. Europe’s W. Europe’s PostclassicalPostclassical Economy?Economy?

W. Europe’s W. Europe’s PostclassicalPostclassical Economy?Economy?

1.1. Manorialism Manorialism £ Subsistence farming = serfsSubsistence farming = serfs£ Lords live off of taxesLords live off of taxes£ ““Old Money” based on landownership Old Money” based on landownership

and traditionand tradition

2.2. Small guilds develop to encourage Small guilds develop to encourage artisanryartisanry

Early Modern Early Modern EconomyEconomy

Early Modern Early Modern EconomyEconomy

Early Modern Early Modern EconomyEconomy……is globalis global

Early Modern Early Modern EconomyEconomy……is globalis global

W. Europe’s Commercial Revolution

…based on new theory:

•Mercantilism– A policy that encouraged nations to maximize

exports and minimize imports• Meant colonized ports could only trade w/ mother

country

–Europe buys raw materials ($)

–Europe sells manufactures ($$$)

Mercantilism & Results in Europe

– Colonial markets led to more manufacturing in W. Europe

New Manufacturing New Manufacturing Demands Demands in Europein Europe

New Manufacturing New Manufacturing Demands Demands in Europein Europe

Met through…Met through…

£Cottage Industry(also called Proto-Industrialization & Putting-Out System)

Production of cloth in rural areas Done by farmers in winter months Supplemented rural income Merchants amassed capital & avoided guilds

Cottage IndustryCottage IndustryCottage IndustryCottage Industry

New Manufacturing New Manufacturing Demands Demands in Europein Europe

New Manufacturing New Manufacturing Demands Demands in Europein Europe

Met through…Met through…

£Cottage Industry(also called Proto-Industrialization & Putting-Out System)

Production of cloth in rural areas Done by farmers in winter months Supplemented rural income Merchants amassed capital & avoided guilds

£Urban manufacturing improved by technology

Metal working, pottery, shoemaking

Mercantilism & Mercantilism & ManufacturingManufacturingMercantilism & Mercantilism & ManufacturingManufacturing

Investment in cottage & urban manufacturing due to…

£Inflation£ What is inflation?What is inflation?

£ Why was there inflation in early modern Europe?Why was there inflation in early modern Europe?

£ Why would inflation encourage investment?Why would inflation encourage investment?

Money in 1550 would buy less in 5 years, so Money in 1550 would buy less in 5 years, so merchants invested in manufacturingmerchants invested in manufacturing

Commercial Revolution Commercial Revolution in Western Europein Western Europe

Commercial Revolution Commercial Revolution in Western Europein Western Europe

£ New sources of income for:New sources of income for: GovernmentsGovernments BanksBanks MerchantsMerchants FarmersFarmers

• Pre-1450: Life similar to E. Europe Pre-1450: Life similar to E. Europe

• 1450-1750: peasant families had 5x 1450-1750: peasant families had 5x more stuff than E. Europeansmore stuff than E. Europeans

Exploration, Columbian Exchange, Mercantilism, & Commercial Revolution

…in World Economy

•New economic patterns (not able to move inland, but)– Slave trade

• Intensifies mercantilism & dependency– New World plantation economies

• Intensifies mercantilism & dependency– exception:

• Gunpowder empires:

China, Ottomans

Silver?

Reflect…

• How are the world economy and developments in Western Europe connected?