1. Contact & Colonization The Economics of Trade and Settlement in the New World

2. Pre-Contact Society: North America ► Six major cultural areas of Aboriginal peoples in Canada

3. Pre-Contact Society: North America Egalitarian ► Smaller societies ► Nomadic hunters and gatherers ► Interests of the group as a whole Centralized ► Larger societies ► Sedentary / agricultural ► Focused authority

4. Pre-Contact Society: Europe ► 16 th Century: The Modern Age ► New seafaring technologies ► New military technologies ► Trade centered on spices, silks, and gems of Asia…costly and difficult.

5. Pre-Contact Society: Europe ► The Reformation  led by Martin Luther, a German monk  A movement to renew the Roman Catholic Church so that it was less greedy, fairer and accessible to all people, not just the rich and well educated.

6. Reasons for Exploration ► To find a sea route to the spices of Asia ► To find gold, silver, and precious stones ► To expand their knowledge of the world ► To control a larger empire ► To expand Christianity “Their incentives were threefold, the ever-present “G’s”: Gospel, Gold, and Glory—the desire to convert others, to enrich themselves, and to win fame.” -Walter Kirchner, historian

7. Mercantilism ► an economic theory that there is a fixed amount of wealth in the world and that a nation's prosperity depends on its success in accumulating wealth by exporting more than it imports.

8. Bullionism ► the monetary policy of mercantilism, which defines wealth by the amount of precious metals (bullion, i.e. gold or silver) in order to maintain a “favourable balance of trade” in the home country.

9. Favourable Balance of Trade ► When a country’s exports (materials they ship out) exceed their imports (materials they ship in).

10. ► European nations of the 17th-19th centuries attempted to produce a favourable balance of trade, through acquisition and development of colonies as exclusive markets and sources of raw materials.

11. Read Article: The Old Mercantilism Hart, Michael. A trading nation: Canadian trade policy from colonialism to globalization. UBCPress, Vancouver. 2002.

12. Colonization ► An economic system in which a dominant “mother country” maintains control over the direction, organization, capital, investment, technology, and manufactured products of the dependant colony which in turn supplies raw materials, agricultural products, and cheap labour.

13. ABORIGINAL PEOPLEEUROPEANS  European technology/ tools and weapons- They became more dependant on manufactured goods and abandoned many of their traditional ways of doing things  Competition and hostilities among Aboriginal societies because of competition to trade (fur) with Europeans. Traditional economies could not be maintained.  European diseases- measles, influenza, smallpox. No immunity existed for these, and the Aboriginal people began to die. Example- between 1634 and 1640, imported diseases eliminated half of the Huron Population.  New food crops- beans, corn, potatoes, etc.  Demand for tobacco and sugar cane- a huge demand developed  Economic growth- In part due to the slave trade that developed  Huge economic impact and growth in Europe because of the colonies and the mercantile system transformed Europe into a capitalist society that was controlled by a global trading network The Impact of Contact