1. European Expansion

2. The Big Questions Why do nations expand?
What impact does exploration and expansion have on economics?
What impact does exploration have on society's values and ideals?

3. Portugal Not a wealthy country  but had a history of seafaring
Prince Henry played a major role in the early phases of exploration
Objectives:
Military glory
Christianize Muslims
Gold, slaves, and overseas route to India for spices

4. Portugal Established trading posts on the African coast
Diaz – Cape of Good Hope
Vasco da Gama – succeeded in going around the Cape of Good Hope to India  failed to establish any trading alliances
Lisbon  capital for import of Asian goods
1511  Defeated Muslim controlled port city-states in India – laid the foundation for Portuguese imperialism (16th and 17th cent.)

5. Spain Columbus embodied the goals of Spanish exploration
Spread of Christianity (converting Muslims and others)
“The Enterprise of the Indies”  direct westward route to Asia
Glory (for himself, Spanish dominance)
Over the next decades the Spanish would follow a policy of conquest and colonization in the New World, rather than equal exchange

6. Spanish Explorers Columbus  Hispaniola and Cuba
Amerigo Vespucci  South America (modern day Venezuela)
Ferdinand Magellan  circumnavigated the globe, took 3 years (he died in the Philippines on the way)
Hernado Cortes  Mexica Empire (interior Mexico)
Francisco Pizarro  Incan Empire (interior Peru)

7. Spanish Conquests
Columbus  Forcibly subjugated the island of Hispaniola
Cortes  Conquered Tenochtitlan and killed Montezuma II
Tenochtitlan was a sophisticated civilization with advanced math, astronomy, engineering, complex social system, and with oral poetry and historical traditions
Led to Spanish subjugation of Mexico, widespread disease, and a decrease in population
Pizarro  Conquered Cuzco (city) and Atahualpa (leader)
Incan Empire was highly sophisticated
The defeat led to decades of violence and disease and ultimate Spanish rule

8. Treaty of Tordesillas
Both Spain and Portugal have claims in the Atlantic
Treaty was signed to settle competing claims to Atlantic discoveries between Spain and Portugal
Spain got the west
Portugal got the east

9. Treaty of Tordesillas

10. Spanish Established the encomienda system Columbian Exchange
System whereby the Spanish crown granted the conquerors the right to forcibly employ groups of Indians; it was a disguised form of slavery
Columbian Exchange
Exchange of animals, plants, and diseases between the Old and New Worlds

11. Columbian Exchange Europe brought over: Europeans brought back:
Sugar, rice, bananas, wheat, grapes, olives
Domesticated animals  horses, cattle, sheep, dogs, pigs, chickens, goats
Smallpox, measles, bubonic plague, influenza, typhus, diphtheria, scarlet fever
Europeans brought back:
Corn, tomatoes, pineapples, potatoes, beans, ect.
Turkeys
Syphilis (possibly)

12. Columbian Exchange

13. England First colony  Roanoke in 1585, vanished Jamestown  1607
Later competed with the Dutch for territory (N.E. to Virginia)
English settlements hugged the coastline  did not explore into the mainland
English Expansion Objectives:
Religious freedom for radical Protestants
Production of tobacco (growing market in Europe)

14. France French Objective  Trade
Samuel de Champlain  founded Quebec 1608
Explored:
Waterways of the St. Lawrence
Great Lakes
Mississippi
Canada
Gulf of Mexico
French territory stretched from Canada down to Louisiana

15. France Also had territories in the West Indies (Caribbean)
Originally were bases for plundering Spanish shipping  eventually some areas became French colonies
Also competed with England for over a century
Seven Years War ( )
France lost Canada and Louisiana
Regained Louisiana in 1800 and sold it to the U.S. in 1803

16. The Netherlands (Dutch)
Traveled east and west, objective was to trade
West:
Henry Hudson  traveled to the U.S.
South America
East
Established the Dutch East India Company  dominant trading company in Europe
Australia
Africa – traded in slaves

17. Exploration and the Economy
Exploration brings Europe new lands and resources
Changes in business & trade, money & economic life
= Commercial Revolution
Mercantilism
National economic policy aimed at accumulating monetary reserves through a positive balance of trade, especially of finished goods
Manor centered  town centered  now state centered
Exploration leads to European rulers rise in power

18. Mercantilism 1. Accumulation of Wealth 2. Trade with Colonies
State is building wealth  gold and silver
1600s  ruler’s power judged by luxury of royal court and size of the army
2. Trade with Colonies
Colonies = source of profit for home country
Colonies supply wealth (gold, silver, raw material) to home country
Colonies buy goods from home country

19. Mercantilism Rise of Joint-Stock Companies
Shipping from Europe to Asia or America  dangerous, time-consuming, expensive
To pay for trading voyages 
Individuals bought stock shares – investors/part-owners
Increase in money, decrease in risk to individual investors
Dutch East India Company, English East India Company

20. Economy and Changing Society
Wealth now means money and good NOT land
Rich middle class merchants  spend money to make money  lack of luxury or savings
Rulers and aristocrats looked down on money-makers  remember, power is judged by excess in luxury and money!!
Huge competition between nations for gold and silver!
Lots of attacks on other nations’ ships!!

21. Economy and Changing Society
Most of the gold and silver went to Spain and Portugal
Wealthy Europeans bought the increase in goods & food BUT products become scarce and prices rise!
Because of an increase in European population there is a need for more food and goods
This leads to INFLATION
A sharp, steady rise in prices caused by excess demand
This will cause social changes across Europe

22. Economy and Changing Society
Inflation affects different groups:
Landowning nobles needed money to buy the same goods  got fixed rent from peasants
Not good for the peasants  many lose their land, forced to work for low wages
Merchants profited by charging high prices for goods sold
Demand for goods is higher than European supply  causes an increase in foreign trade for goods

23. Capitalism
Capitalism – economic system based on private ownership and use of capital
Capital – wealth in the form of property/money used to make more money (land, tools, machinery, ships, shops, ect.)

24. Capitalism
During the Late Middle Ages  new business practices led to capitalism (in Italy)
Profits from trade and interest on loans  Italian merchants built up their capital
They used it to reinvest in their business or other enterprises
They pooled money and expanded business
As business activity increase, merchants developed book keeping system to track money flow
Banking and use of credit made business dealing much easier

25. Capitalism 1. Private Ownership = Free Enterprise
People free to do what they want with their money
Bank for interest, start a business, invest in a company, ect.
2. Profit Motive – Desire to make a profit
Law of Supply and Demand
Demand is greater than supply = price increase
Supply is greater than demand = price decrease
Company produces goods to make a profit for its investors or owners

26. Capitalism 3. Markey Economy
Money value placed on all property – land, goods, time, labor
Because price and quantity decisions are made in a free market  people must adhere to the law of supply and demand
NOTE: Mercantile Capitalism of s differ from modern capitalism!
No large corporations which made modern capitalism possible