THE WORLD ECONOMY

1
THE WORLD ECONOMY

• EXCHANGES, CAPTIALISM, COLONIALISM, AND EMPIRE
  BUILDING

2
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

3
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
• 16TH 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

4
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

5
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 (1704-1714)
• Hapsburg family has no heirs to Spanish throne
• France set to inherit empire England, Dutch,
  Austrians oppose
• The Seven Years' War (1756-1763)
• 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