period 4 (1450-1750) aim: how did european companies facilitate new global circulation of goods and...

17
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

Upload: maryann-pearson

Post on 01-Jan-2016

215 views

Category:

Documents


0 download

TRANSCRIPT

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.

The Impact of the Age of Exploration: Europe

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

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?

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?

Cycle of Conquest & Colonization

Cycle of Conquest & Colonization

Explorers Conquistadores

Mission

arie

s

PermanentSettlers

OfficialEuropeanColony!

Europe was greatly impacted by the

Age of ExplorationOverseas 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

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

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

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

The Portuguese & Dutch seized trade ports in the Spice Islands & in India in order to gain exotic

goods like cotton & spicesEuropean 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.

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

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

Conclusions

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

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