1. The Age of Exploration

2. In Search of Spices
In the 15th century, Europe could only get spices from Italian merchants trading with Arabs.
Spices were very expensive.
Portuguese sailors took advantage of improvements in ship design and navigation to find a new route around Africa.

3. Christopher Columbus
Columbus was an Italian sailor who thought it would be faster to reach the East by sailing west.
Studying ocean currents, weather, and birds (and some poorly translated books) led Columbus to believe the westward distance to Japan was about 1/3 of the actual distance.
Luckily (for Columbus) there were two uncharted continents in his way.
Thinking he was in what is now Indonesia, he called the natives “Indians”. The name stuck.

4. Colonization Spain began setting up colonies in the “New World”.
Portugal followed and papal mediation divided the New World between them.
Protestant England and Holland (the Netherlands) ignored the Pope’s rule and set up their own colonies, as did Catholic France.

5. The Encomienda System
Spain establishes the encomienda system to govern its colonies.
Natives are forced to become medieval serfs, laboring for Spanish lords.
Native labor proves a problem, many escape into the interior and more die of European diseases like smallpox.

6. Slavery
The Spanish soon found it more economic to import African slaves to labor in the fields and mines of the encomiendas.
Soon a triangular trade developed.
Finished goods from Europe are shipped to Africa for slaves sent to the Americas for raw materials sent back to Europe.

7. “The Three G’s” Early colonist are motivated by “the three G’s”
God—by converting natives to Christianity
Gold—getting rich off the natural resources of the New World
Glory—becoming a famous explorer or conqueror.

8. The Columbian Exchange
Do you like ‘sweet and sour’?
What do you need to make it?
What’s left if you take away the American foods?
Like ice cream?
No chocolate or vanilla.
Peanuts in your Pad Thai or on Mu Satay?
French fries?
Sweet corn?
Avocados?
Pumpkins and squash?
Do you smoke?

9. Joint Stock Companies
British and Dutch merchants often became very rich, but could not invest in land (there was none to buy).
Their governments did not always have the money to finance new colonies.
Few individuals were able (or willing) to risk enough money to found a new colony.
Instead, groups of individuals would pool their resources. Your share of the profit was equal to your percent of the initial investment.
These joint stock companies are the basis for modern corporations.

10. Mercantilism
Joint stock companies also enabled merchants to spread the risk of a trading voyage.
This greatly increased the amount of international trade.
Governments began to worry too much of their wealth was going to other countries.
It became the goal of every European country to make sure more money was coming in than going out—a positive balance of trade.
This philosophy called mercantilism is the basis for capitalism and imperialism.