Download Capitalism - Thomas C. Cario Middle School

Economic & Political Influence of the New
Global Age
(1600-1700)
Mercantilism & Capitalism
Mercantilism
• European global
trade & colonial
expansion caused
MAJOR
ECONOMIC
CHANGES
Mercantilism
• Old Economic System
 Feudal System - based on land ownership & fealty
(loyalty in exchange for protection)
• Economies became more complex
 Improved navigational technology
 “discovery” & colonization of new lands
 Growing merchant class
Mercantilism
• European nations develop a new economic
system called MERCANTILISM!!!!
Mercantilism
• Under this new policy governments sought
to control & regulate trade in order to
create a favorable balance of trade.
• GOALS:
 Value of exports > value of imports
 Build supplies of gold & silver for homeland
Mercantilism
• Colonies are important!!!
 Provide cheap raw materials & resources for
European countries
 Provide a market for finished goods made in
Europe
Mercantilism
• Europeans controlled trade
 Require colonies only trade with mother nation
 Place tarriffs on goods imported from other
nations
CAPTIALISM IS BORN!!!
• Mercantilism was the major economic
model in Europe.
• Capitalism is an economic system based
upon the private ownership of resources &
production TRYING TO MAKE A
PROFIT!!!
Capitalism
• Trade was operated through private
ownership.
 Merchants and ship owners took the risks &
enjoyed the PROFITS
Capitalism
• Merchants & ship owners
 Make up the backbone of the growing
MIDDLE CLASS in European towns and cities
 Their wealth contributes to the growing
markets in Europe
Capitalism
• Middle class private citizens start
PRIVATE BUSINESSES!!!
• This creates a MARKET ECONOMY
 A system in which individual buyers and
sellers interact exchanging goods & services
Capitalism
• Causes for the birth of Capitalism
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International trade & colonization
Mercantilism
Rise of the Middle Class
Development of the Market Economy
• All of these causes are critical in the
creation & advancement of Capitalism
Global Influence
• European expansion & colonization
means…
 Changes in European political & economic
structure spread to Africa, Asia, & the
Americas
Asia
• Before Europeans got to Asia, they were:



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Highly advanced
Prosperous
Relatively modern
Militarily strong
Asia
• European influence in Asia was prompted
by trade
• Asians were treated with more respect
because they were viewed as “equals”
• mutually beneficial trade relationships (not
one side getting everything while the other
is enslaved or taken advantage of)
Asia
 Europeans were allowed to build trading posts
in port cities BUT DID NOT COLONIZE ASIA.
 The Asian economies became more
dependent on European trade & markets
 Created a prosperous merchant class in Asia
that was closely aligned with the Europeans
Asia
 Even though Europeans did not colonize Asia,
their culture had a profound impact on Asians
– especially with the introduction of
Christianity by missionaries (started to end
Asian isolation)
 Because of this influence of Christianity, the
many Asian governments limited or closed off
trade with the Europeans in a return to
isolationism in order to protect their cultures.
Africa
• Economic & Political influence in Africa
was based on the Trans-Atlantic Slave
Trade.
Triangular Trade
Influence in the Americas
• Major colonization
• Economically driven
• Spain, Portugal, England, France, & the
Netherlands
Influence in the Americas
• Spanish & Portuguese Colonies
 Gold & Silver discovered
 Plantations
• Native slave labor first. African slave labor later.
• Social system where Natives & Africans mistreated
& excluded
 Spread Catholicism
Influence in the Americas
• English colonies
 Plantations- Tobacco, rice, indigo, sugarcane
(Warmer climates)
 Jamestown
 Pilgrims - Religious freedom
 Indentured servants
• Georgia = penal colony (Australia came later)
Influence in the Americas
• France, England, & Dutch did not enslave Native
•
Americans, but did import slaves from Africa
French Fur-trade
 Trading post colonies
 Lose to British in French & Indian War (1754-1763)
French lose influence in Americas
• Dutch Merchants!!!
 Trading posts
 Dutch East India Company
Political Styles
• Spain & Portugal
 Strong central Monarchy
 “micromanage” colonies
• French & Dutch
 Allowed more political freedoms
• English
 Representative Governments
Summarize
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•
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Mercantilism
Capitalism
Columbian Exchange
European influence around the World