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THE WORLD
ECONOMY
Tim, Zac, Alexis, Brittany, and Claire
INTRODUCTION TO SILVER
Silver became global currency of the early modern
period
 Could be mined in Japan, South America, and Mexico
 Spanish rulers kept one-fifth of the silver produced in
their Latin America colonies for its value
 Europeans used silver to buy Asian goods
 China and India received most of European silver
 Tax payments were lowered because initial payment
was more valuable
 Silver caused a gap between the rich and poor because
it was very difficult to obtain
 Mine working conditions were very harsh

MARITIME POWER
Deep, drafted boats were better for ocean travel
 Advances in compass, metalworking, and explosives
 Vasco de Gama was first explorer to reach India by sea
 Magellan and crew circumnavigated the globe
 France and England took lead in colonization
 Portugal also initiated colonization into West Africa
 Portugal had a vast trade network, eventually moving
their colonies north

TOWARD A WORLD ECONOMY
o
The Columbian Exchange of Disease & Food
•
Native Americans suffered the most because they had not previously been exposed to AfroEurasians to create a new population of their own citizens and slaves imported from America.
•
Their death became the opportunity for Europeans to create a new population of their own
citizens and slaves imported form Africa.
o
The West’s Commercial Outreach
•
Western Europe controlled most of oceanic shipping.
•
Parts of the Indian and subcontinent and islands of southeast Asia had a strong governments
that limited the Europeans ability to seize harbors.
o
Imbalances in World Trade
•
European nations dominated trade, Spain had some dominance from the import of silver.
•
The core nations in the new world system supplemented their growing economic prowess by
self serving political policies.
o
A System of International Inequality
•
In dependent areas not all people were mired in poverty.
•
Coercive labor systems spread.
TOWARD A WORLD ECONOMY

The Expansionist Trade
•
By 18th century, Western traders were advancing in India as Mughal empire began to fall.
•
World economy grew over time.
•
Eastern Europe was brought into growing relationship with the world economy and west
European core.
COLONIAL EXPANSION

The Americas: Loosely Controlled Colonies
•
European guns, horses, and iron weapons offer special advantages.
•
Spain is first to move – first colony established by Vasco de Balboa in Panama.
•
Several expeditions launched from Cuba to start conquest of Mexico.
•
Francisco Pizarro – attacked Inca Empire & killed the emperor. Assassinated in 1541.
•
In 17th century, France, Britain, and Holland seized and colonized West Islands.

British and French North America: Backwater Colonies
•
Land grants stimulate recruitment of settlers.
•
Catholic Church holds high position.
•
Treaty of Paris – granted New France to England in 1763.
•
Seven Years War – (1756-1763) took place in Europe & in oversea colonies.
•
Indians move westward as population begins to decrease from disease and warfare.
•
Trade and manufacturing develop widely in new colonies.
•
Colonists retain European culture except for importation of African slaves.

North America and Western Civilization
•
New western habits develop – Americans marry earlier & had more children.
•
British colonists revolted against leaders using western political and economic ideology.
•
First to implement concepts of that ideology
COLONIAL EXPANSION

Africa and Asia: Coastal Trading Stations
•
Most Europeans confined because of climate, disease, non-navigable rivers, and African
strength.
•
Dutch founded Cape Colony in 1652.
•
Dutch began wars with the Bantu.
•
Rivalry over colonization in Asia between Britain and France.
•
British East India Company gave the British an advantage.
•
French power in Asia destroyed by East India Company.
•
Only people in the Philippines were drawn to Christianity.
 Impact
on Western Europe
•
Colonial rivalries added to nation rivalries
•
Seven Years War is the first worldwide war – fought in Europe, Asia, and America.
•
New products changed lifestyles (ex. Sugar is available to ordinary people)
•
Colonies brought new wealth to Europe.
COLONIAL EXPANSION

Impact of a New World Order
•
World Economy and European Colonialism have immense impact. – Range of unfree labor
systems to supply goods become more widespread than ever.
•
Slavery and Serfdom – disrupted West Africa and individual lives.
•
World economy brought benefits:
•
New foods
•
Wider trade patterns
•
Merchants & landowners gained wealth
•
China prospered with silver imports