1. Period 4 (1450-1750) Aim: How did European companies facilitate new global circulation of goods and maintained established regional markets in Afro-Eurasia? Do NOW: 1. What is Columbus discussing? 2. Who is it addressed to? 3. Why does he use this tone? EVIDENCE? In reference to the transportation of gold from the island to Castile, that all of it should be taken on board the ship, both that belonging to your Highnesses and the property of every one else; that it should all be placed in one chest with two locks, with their keys, and that the master of the vessel keep one key and some person selected by the governor and treasurer the other; that there should come with the gold, for a testimony, a list of all that has been put into the said chest, properly marked, so that each owner may receive his own; and that, for the faithful performance of this duty, if any gold whatsoever is found outside of the said chest in any way, be it little or much, it shall be forfeited to your Highnesses.

2. The Impact of the Age of Exploration: Europe

3. Some governments granted royal charters to European companies, giving them a monopoly on trade and even the power to take over land in the name of the crown. Overseas colonies increased the wealth of European nations, the power of kings. Some expeditions were paid for by citizens who formed joint-stock companies- investors pooled resources for common purpose (forerunner of modern corporation), reduced risk. They took silver from Spanish colonies in the Americas to purchase Asian goods for the Atlantic markets

4. British East India Company Commonly associated with trade in basic commodities, which included cotton, silk, indigo dye, salt, saltpetre, tea and opium WHY these items? The Company received a Royal Charter from Queen Elizabeth in 1600, making it the oldest among several similarly formed European East India Companies- Why were other countries involved? How does this differ from China’s trade?

5. Dutch East India Company It is often considered to have been the first multinational corporation in the world. The first company to issue stock. It was also arguably the first megacorporation, possessing quasi- governmental powers, including the ability to wage war, imprison and execute convicts, negotiate treaties, coin money, and establish colonies Dutch Verenigde Oostindische Compagnie (VOC) had military and naval forces of their own that dwarfed even the average European state's armed forces, and adequate funds to buy the best men and equipment, in effect making them a state within a state. BENEFITS? Drawbacks?

6. Cycle of Conquest & Colonization Explorers Conquistadores Missionaries Permanent Settlers Official European Colony!

7. Europe was greatly impacted by the Age of Exploration Overseas colonies increased the wealth of European nations, the power of kings. This was especially true in Spain where the influx of gold & silver turned Spain into one of the wealthiest & most powerful nations in Europe King Philip II

8. The increase in trade led to the growth of capitalism, especially in England & the Netherlands Capitalism is a system in which merchants trade & invest money in order to make a profit; Prices are determined by supply and demand Citizens can invest money in companies like the British East India Company & share in the profits

9. Mercantilism Nations developed an economic policy called mercantilism based upon the idea that national power comes from a favorable balance of trade As a result, colonies are needed to supply the mother country with cheap raw materials

10. Due to mercantilism, a “triangular trade” developed between Europe, their overseas colonies, & Africa

13. The Portuguese & Dutch seized trade ports in the Spice Islands & in India in order to gain exotic goods like cotton & spices European merchants began to dominate trade in China & Japan & converted many people to Christianity European companies took silver from Spanish colonies in the Americas to purchase Asian goods for the Atlantic markets.

14. Silver from the Americas European merchants’ role in Asian trade was characterized mostly by transporting goods from one Asian country to another market in Asia or the Indian Ocean region. Commercialization and the creation of a global economy were intimately connected to new global circulation of silver from the Americas

15. Spanish Galleon Trade Routes (Silver Ships) – Effect on Spain? Global Economy?

16. Conclusions As a result of the Age of Exploration, European knowledge & influence of the world increased greatly

17. What were the social and economic effects of the global flow of silver?