THE WORLD ECONOMY EXCHANGES, CAPTIALISM, COLONIALISM, AND EMPIRE BUILDING

COLONIAL EXPANSION ► The Americas  Spain: Began with control of Caribbean, Invaded Mexico 1521, Peru 1531  Portugal: Cabral visit coast of Brazil; Treaty of Tordesillas granted Brazil  Colonies developed ► By small band land hungry conquistadors, colonial rulers exploit Indians ► Only later did formal Iberian rule replace corrupt conquistators  Direct Rule ► Colonial administrators sent out from Spain, Portugal ► Established agricultural (ranching or plantation) colonies ► Colonial societies with Europeans at top created rarely had European majorities ► Missionaries sent out to covert Indians ► English, French, Dutch create smaller empires on fringes  Caribbean holdings more profitable than North American colonies  Caribbean islands and Southern American colonies ► Export sugar, rice, tobacco, cotton, indigo rice ► Dominated by slaves, plantations; relied on importation of Africans for labor  Atlantic Seaboard: settler colonies for Europeans (called Neo-Europes) ► Land grants made to encourage colonization ► European populations surpassed native Indians ► European society, economic systems reestablished; mini copies of Western European ► Europeans displaced, drove off most Indians and converted land to agriculture

TRADING POST EMPIRES ► No attempt to create empires but control trade, wealth ► Portuguese built 50+ posts between west Africa and east Asia  Alfonso d'Albuquerque ► 16 TH century Portuguese commander in Indian Ocean ► Seized Hormuz in 1508, Goa in 1510, and Melaka in 1511 ► Forced all merchant ships to purchase safe-conduct passes  Portuguese hegemony grew weak by the late sixteenth century ► English, Dutch established trading posts in Asian coasts  English in India, the Dutch at Cape Town and Indonesia  Created efficient commercial organization ► Joint-stock company  Shares could be bought by anyone with money  % of shares correspond to percentage of profit due  Allowed for larger, richer entities to operate  Limited risk of any one participant to cost of the stock purchased  Privileges, terms often guaranteed by government, which often also owned stock ► Insurance  Companies arose which insured ventures  Lloyds of London is the oldest in world ► Formation of powerful, profitable joint-stock companies  English East India Company, founded in 1600  United East India Company (VOC), Dutch, founded in 1602  Private enterprises, enjoyed government support, little oversight

EUROPEANS IN INDIAN OCEAN ► Posts were commercial ventures not areas of colonization ► Portuguese controlled area initially  Established ports in India, dominated trade to, from India ► Goa was capital for Indian Ocean Portuguese Empire ► Conquered Sri Lanka, several other ports with permission of Mughals ► Introduced Catholic missionaries to Indian Ocean  Seized port of Malacca on Malay peninsula to do same as in India ► Traded with locals for spice ► Later conquered parts of Spice Islands ► Spanish conquest of the Philippines  Manila, bustling port city, became Spanish capital; Spanish tended to live in cities  Islands divided into plantations to grow sugar  Spanish, Filipinos massacred Chinese merchants  Christianity spread by Dominicans throughout archipelago  Muslim resistance on southern island of Mindanao ► Conquest of Java by the Dutch  Began with VOC trading city of Batavia in 1619  Drove Portuguese out, seized their possessions  Policy: secure VOC monopoly over spice production, trade  Enormous monopoly profit led to prosperity of Netherlands  Forced locals to grow rich, coffee in place of regular crops ► English arrive 17 th century to attack Portugal, later displaced Dutch  Establish British East India Company  Relied heavily on Royal backing, Royal navy, and acquisition of Indian lands

COMMERICAL RIVALRIES ► Global competition and conflict  Dutch forces expelled most Portuguese merchants from southeast Asia  Conflict between English and French merchants over control of India ► Began as rivalry with Portuguese ► Each side made alliances with local rulers to establish trading rights ► Cotton and tea from Ceylon, early eighteenth century  Competition in the Americas among English, French, and Spanish forces ► Anglo-Dutch Wars (1640s to 1670s)  English and Dutch fight three wars for control of seas  English win and take New Netherlands (New York); Dutch reduced in world role ► War of Spanish Succession ( )  Hapsburg family has no heirs to Spanish throne  France set to inherit empire; England, Dutch, Austrians oppose ► The Seven Years' War ( )  In Europe: British and Prussia against France, Austria, and Russia  In India: fighting between British and French forces, each with local allies  In the Caribbean: Spanish and French united to limit British expansion  In North America: fights between British and French forces ► Outcome of All: British hegemony  British gained control of India, Canada, Florida  Dutch allowed to retain Ceylon, South Africa, Indonesia as English allies  In Europe, Prussian armies held off massive armies of the enemies  War paved the way for the British empire in the nineteenth century  British influence paramount in Latin America