1. Mercantilism

2. The “Columbian Exchange”
Squash
Avocado
Peppers
Sweet Potatoes
Turkey
Pumpkin
Tobacco
Quinine
Cocoa
Pineapple
Cassava
POTATO
Peanut
TOMATO
Vanilla
MAIZE
Syphilis
Trinkets
Liquor
GUNS
Olive
COFFEE BEAN
Banana
Rice
Onion
Turnip
Honeybee
Barley
Grape
Peach
SUGAR CANE
Oats
Citrus Fruits
Pear
Wheat
HORSE
Cattle
Sheep
Pigs
Smallpox
Flu
Typhus
Measles
Malaria
Diptheria
Whooping Cough

3. Mercantilism
Between 1600 and 1800 most of the states of western Europe were heavily influenced by a policy usually known as mercantilism.
an economic theory that states that the world only contained a fixed amount of wealth and that to increase a countries wealth, one country had to take some wealth from another either through having a higher import/export ratio or in actual conquest of new lands and resources.
essentially an effort to achieve economic unity and political control.
Generally it may be thought of as a collection of policies designed to keep the state prosperous by economic regulation.
These policies may or may not have been applied simultaneously at any given time or place.

4. Mercantilism
an economic theory that states that the world only contained a fixed amount of wealth and that to increase a countries wealth, one country had to take some wealth from another either through having a higher import/export ratio or in actual conquest of new lands and resources.

5. 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.
The rise of a money economy, the stimulation produced by the influx of bullion from America, the fact that taxes were collected in money, all seemed to support the view that hard money was the source of prosperity, prestige, and strength.
Bullionism dictated a favorable balance of trade.
That is, for a nation to have gold on hand at he end oft he year, it must export more than it imports. Exports were later defined to include money spent on freight, or insurance, or travel.
Each nation tried to achieve economic self-sufficiency.
Those who founded new industries should be rewarded by the state.

6. Treasures from the Americas!

7. 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.

8. 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.

9. New Weapons Technology

10. 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

11. Zones of world economy
Core nations (mostly European) profited from the world economy.
Controlled international banking and commercial services
Exported manufactured goods and imported raw materials
Dependent economic zones are the regions within the world economy that produced raw materials
They were dependent upon European markets and shipping; tendency to build systems based on forced and cheap labor

12. New Colonial Rivals (slave trade)

13. Slave Trade

14. Columbus’ Four Voyages

15. Other Voyages of Exploration

16. European Exploration

17. Mexico Surrenders to Cortés

18. The First Spanish Conquests: The Incas
vs.
Francisco Pizarro
Atahualpa

19. Trans-Atlantic Slave Trade

20. The 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 exported to other countries.
Between 16c & 19c, about 10 million Africans shipped to the Americas.

21. Slave Ship

22. “Coffin” Position Below Deck

23. emergence of dominant core areas and peripheral dependent zones create an imbalance in world trade
Core areas were those areas of the world economy typified by production of manufactured goods, control of shipping, monopoly of banking and commercial services.
Core areas were located primarily in northwestern Europe¹Britain, France, and Holland.
Dependent zones were regions typified by production of raw materials, supply of bullion, plantation agriculture of cash crops produced by coercive labor systems.
Dependent zones surrounded the European core including southern and eastern Europe, Asia, and the colonial discoveries of the European explorers.

24. Production Thriving agriculture should be carefully encouraged.
Domestic production not only precluded imports of food, but farmers also provided a base for taxation.
Colonies could provide captive markets for manufactured goods and sources of raw material.
A large population was needed to provide a domestic labor force to people colonies.

25. Need to keep wealth at home
Luxury items were to be avoided because they took money out of the economy unnecessarily.
State action was needed to regulate and enforce the above policies.
One might add that there was nothing logical or consistent about mercantilism, and that it displayed, in fact, enormous variation.

26. Initial Stages
In Spanish and Portuguese America the quest for gold and silver was ultimately fulfilled in Mexico and Peru.
When the colonial economies expanded, they came to produce sugar in Mexico, the Caribbean, and Brazil, hides in South America, coffee in Brazil.
In North America, furs from the north were a major export.
In the south, tobacco and rice drove the economies.
In the northeast, the Grand Banks proved to be one of the world's great fishing grounds.
Spain exercised rigid control of her empire's commerce and industry.

27. England
Mercantilist policies adopted during the reign of Elizabeth were continued in the seventeenth century under the Stuarts and Oliver Cromwell.
Elizabethan laws were passed to discourage idleness, to reward industrial enterprise with monopolies, and to control the commerce by means of Navigation Acts.
Elizabeth gave her justices of the peace the authority to fix prices, regulate hours, and compel every able-bodied subject to work at some useful trade.

28. England vs. Spain
England was late in joining the competition for Asian trade, but England also reached out.
In the New World England and Spain were bound to come in conflict. England had participated little in the process of exploration yet insisted that its occupation provided a legitimate claim to title.
Of course, Spain claimed that discovery provided the claim to title. The Spanish not only desired to monopolize the trade of their colonies, but the also wished to prevent the English from establishing a foothold which would constitute a base for penetration of Spanish territory.
Generally speaking, the English disliked the Spanish.

29. Goes back to Fleets The Secret of English success was seamanship.
The Spanish conceived of a naval battle as a contest of armies on floating platforms.
When Philip II decided to put an end to English depredations by means of the Spanish Armada, he put a soldier in charge.
As Philip II prepared to invade England, English "sea dogs" harried Spanish shipping. Drake singed the beard of the Spanish king by sailing boldly into Cadiz Harbor and destroying a number of great ships.
Still in May 1588 the Armada was ready and sailed from Lisbon. It is true that weather was against the Spanish, but seamanship and maneuverability saved England, not the winds.

30. Zheng He’s

31. Zheng He
440 feet long
Compared to
75 feet long

32. Triangle Trade

34. Middle Passage

36. What was needed to maintain mercantilism
Regulation of international trade
State intervention
Monopoly
Protection of manufacturers
Strong state government

37. Lead to: Competition between nations Navigation and other Trade Acts
Avoidance of tariffs
Need for large labor force
Slave Trade
Conflict on the seas
Larger Ships more maneuverable ships

38. The Pattern of World Trade

39. The Pattern of World Trade
One of the consequences of the Portuguese exploration of the African coast was the discovery of sources of gold as well as ivory and slaves.
Pushing their exploration on to India in the sixteenth century, the Portuguese were able to establish a monopoly over the spice trade thereby considerably damaging the Muslim middlemen.
Establishing a headquarters at Goa in 1510, the Portuguese ranged further east to Malacca and the Moluccas (Spice Islands) in search for spices.
Later, the Spanish, Dutch, English, and French would interject themselves into the Asian trade.
While spices were the mainstay of the international trade, silk textiles were also a prominent trade item.

40. Connections
As capitalism and wealth grew in Europe, there was more and more demand for the goods from overseas.
Meanwhile, trade was not only international but also regional, especially in Asia where tin, copper, gold, agricultural products, cloth, textiles, and ceramics were exchanged.
For the colonizing powers, the availability of luxury goods and raw materials from overseas was counterbalanced the opening of markets for goods produced in the mother countries.
Mercantilism ruled the day as each state sought to close it markets to its own businessmen, this being especially so with Spain and England.
The ultimate objective was to cut out the foreign middlemen.

41. Impact of Commercial Revolution
sixteenth century change the social structure of the West
Produced proletariat¹people without access to real property
worked in domestic manufacturing, as agricultural labor, or as unemployed, urban poor
created greater divisions between estates signified by popular risings of sixteenth and seventeenth centuries
distrust of poor reflected in witchcraft hysteria.
absolute monarchy of the seventeenth century
Balance between monarchy and nobles shifted in favor of the monarchy
loss of feudal independence
monarchs gained new powers
more ambitious military organization marked by professionalized armies, improved methods of tax collection
appointment of bureaucracies more common
decline of parliamentary government
use of mercantilism as state-controlled economic system.

42. Economic Philosophy

43. Mercantilism
an economic theory that states that the world only contained a fixed amount of wealth and that to increase a countries wealth, one country had to take some wealth from another either through having a higher import/export ratio or in actual conquest of new lands and resources.

44. Mercantilism in History
Between the 15th and the 18th centuries in Europe, powerful states were created and were dedicated to the pursuit of economic power and wealth.
Governments organized their then-limited capabilities to increase the wealth of the country.
Mercantilist governments promoted…
exports over imports
industrialization over agriculture
the protection of domestic production against competition from imports
the intervention in trade to promote domestic employment

45. Mercantilism in History
Jean-Baptiste Colbert ( ) an advisor to Louis XIV, argued that states needed to accumulate gold and silver to guarantee power and wealth.
Alexander Hamilton ( ) advocated policies to protect the growth of the state’s manufactures.
Friedrich List ( ) advocated strong government intervention for economic development and government aid to technology, education and, like Hamilton, to industry.

46. Mercantilist Perspective
Humans are aggressive and have conflictual tendencies
Goal is to increase state power, achieved by regulating economic life; economics is subordinate to state interests.
International economy is conflictual;
insecurity of anarchy breeds competition;
each state defends itself.
Views of human nature
Relationship between individuals, society, state and market
Relationship between domestic and international society

47. Why Europe and not China?
Guns, Germs and Steel, Jared Diamond, ethnobiologist
Plant and animal domestication meant much more food and hence much denser human populations. The resulting food surpluses, and (in some areas) the animal-based means of transporting those surpluses, were a prerequisite for the development of a settled, politically centralized, socially stratified, economically complex, technologically innovative societies.
Hence the availability of domestic plants and animals ultimately explains why empires, literacy, and steel weapons developed earliest in Eurasia and later, or not at all, on other continents. The military uses of horses and camels, and the killing power of animal-derived germs, complete the list of major links between food production and conquest . . .
Eurasian peoples happened to inherit many more species of domesticable large wild mammalian herbivores than did people of the other continents. That outcome, with all of its momentous advantages for Eurasian societies, stemmed from three basic facts of mammalian geography, history and biology. First, Eurasia, benefiting its large area and ecological diversity, started out with the most candidates. Second Australia and the Americas, but not Eurasia or Africa, lost most of their candidates in a massive wave of late-Pleistocene extinctions . . .Finally, a higher percentage of the surviving candidates proved suitable for domestication on Eurasia than on other continents.

48. Technological advancement