DBQ Early Global Economy - PowerPoint Presentation

Slide1

DBQ Early Global Economy: Aspects of trade, motivations and complexities

Aspects of trade, motivations and complexitiesSlide2

Historical Context

Regional trade 600-1450 was determined by a diverse group of merchants, Empires, missionaries and commoditiesIndian Ocean (Southernization) was the focal point for Lateen sails/Dhows and Junk ships to engage in Interregional trade of commodities like spices, sugar, tropical fruits, precious metals, porcelain, tea, etc.

Advances in commerce like guilds, banking and credit agencies, proto-industrialism (mass manufacturing by hand), currency exchanges became the basis for proto-capitalism ( market economy)

European like Spain and Portugal (Iberian Treaty of Tordesillas) and French, English and Dutch began Trading Post Empires on the coasts of Africa and Asia and Pacific Islands ( as well as colonies in the Americas).

China’s Ming Dynasty changed their currency to silver ( payment of taxation, labor, currency for coveted trading items)Europe was engaged in mercantilism to exploit land, labor and capital and wished to join the global market.China and Japan had been isolated (Ming and Tokugawa respectively) only temporarily opening ports (Macao and Canton for Ming and Nagasaki for Japan)Slide3

Global flow of silver can be economic, political or grouped by commodities like silverSlide4

Doc #2

Source: merchant Chang Han on foreign trade in China, c. 1490.Merchants boast that their wisdom and ability are such as to give them a free hand in affairs. They believe that they know all the possible transformations in the universe and therefore can calculate all the changes in the human world, and that the rise and fall of prices are under their command

POV of merchant after Ming Dynasty begins its period of isolation and before the

silverization

by Spain (1517) remember, merchants were not well regarded in China. This one particularly looks down on the boastfulness of foreign merchants (perhaps Japanese in Tokugawa or European come into Canton and Macao. Perhaps it serves as foreboding or a warning of the inflation yet to comeSlide5

Doc #3 Ibn Khaldun

on trade in general (POV Khaldun was an Arab economist)

most of the methods it employs are tricks aimed at making a profit by securing the difference between the buying and selling prices, and by appropriating the surplus. This is why [religious] Law allows the use of such methods, which, although they came under the heading of gambling, yet do not constitute the taking without return of other people’s goods…

Kaldun

discusses how without laws and regulations (Sharia) would be tricky and implies it would be wrong (POV religious or Arab and/or cultural). Remember, the Arab world controlled great maritime and overland trade in the post-classical world (look at the date :1370)Slide6

Document # 4Source: biography written by Reginald of Durham on St. Godric

, c. 1600 European source around the time of Age of exploration and conquest

“Hence he made great profit in all his bargains, and gathered much wealth in the sweat of his brow; for he sold dear in one place the wares which he had bought elsewhere at a small price.”

Could be cultural (St.

Godric or definitiely a European source (as opposed to the earlier Chinese and Arab sources). Hansaeatic cities like Flanders and Scotland are mentioned (Commercial Revolution) and could help to evaluate why/how Europe becomes competitiveSlide7

Doc #5 Source: Thomas Mun

, from England’s Treasure By Foreign Trade, 1664.

“The ordinary means therefore to increase our wealth and treasure is by Foreign Trade, wherein wee must ever observe this rule; to sell more to strangers yearly than wee consume of theirs in value. For suppose that when this Kingdom is plentifully served with the Cloth, Lead, Tin, Iron, Fish and other native commodities, we doe yearly export the

overplus to foreign Countreys

to the value of twenty-two hundred thousand pounds; by which means we are enabled beyond the Seas to buy and bring in foreign wares for our use and Consumptions, to the value of twenty hundred thousand pounds”This European source indicates the measure of English mercantilism and the wish to maintain a favorable balance of trade with respect to foreign markets.Slide8

Doc 6 Source: Manila galleons docked in a Filipino harbor readying for their voyage across the Pacific Ocean

Illustration indicates Spanish Galleons sneaking silver into

China’s southern cities (Macao and Canton) can be grouped with

Doc #1 or as Spain or under the commodity of silver, As of 1571, 

The increase of the global supply of silver to purchase highly coveted 

Asian goods throughout the world indicated a increase of Spanish 

Global power forcing markets open (Spanish pieces of 8 was a highly

Desired currency) due to Ming Dynasty's transition of currency 

From paper to silver (taxes, wages and all items paid in silver)

 will eventually glut the market and inflation will destroy the 

economies of Spain and Ming due to hyperinflation ( the bubble burst

)Slide9

Doc #7 Source: Proclamation to Christopher Columbus for his first voyage from Fernando and Isabela,

Privileges and Prerogatives, 1492

and it is hoped that by God’s assistance, some of the said islands and Continent in the ocean will be discovered and conquered by your means and conduct, therefore it is but just and reasonable, that since you expose yourself to such danger to serve us, you should be rewarded for it.

This document exposes the motivations for Columbus (Glory or Gold, perhaps God) which is how all of these documents could be grouped but also exposes the royal patronage of Spain to the private enterprises of joint stock companies like documents #4 and 5Slide10

Document #8 depicting Europe’s entrance into Indian Ocean trade

This map allows the reader to evidence important explorations

And motivations (God, Gold and Glory) by primarily Spanish

And

Portugese

merchants to tap into Indian Ocean markets (for

Spices, sugar and markets in Africa and Asia) can be grouped

Economically, by Spain and Portugal or by royal patronage)Slide11

Doc #9 Source: Bullion for Goods - European and Indian Merchants in the Indian Ocean Trade, 1500-1800, Om

PrakashAs far as Asia was concerned, the commercial operations of the European corporate enterprises as well as private traders in the Indian Ocean region between the sixteenth and the eighteenth centuries had far reaching consequences for the economies and the polities of the countries of the region. Asian merchants engaged in the Indian Ocean trade interacted with the European intruders into the Ocean in a variety of ways.

This can be grouped politically , economically or by Europe’s entrance ( remember Spain and Portugal had royal patronage whilst England, France and the Dutch had private enterprises) this can be grouped with Document #8 in terms of European arrival or by motivations ( God, not much but gold and glory for profits and lucrative trade of Indian Ocean goods)Slide12

Doc #10 Source: A Taste of Paradise: Cinnamon by Troy David Osborne

the free trade that had previously existed in those regions essentially ceased to exist. Increased demand for spices, spiraling customs duties, and the inadequate capacity of overland trade caravans spurred the search for new routes to Asia by Europeans eager to take part in the lucrative spice trade

.

This narrative provides for historical context as to the motivations for Europeans to engage in the Spice trade. This can e grouped economically, by Europe in general or by commodities like spices which drove the global market.Slide13

Thesis

Interregional trading networks in the post-classical world 600-1450 were dominated by Muslim and Chinese merchants both overland and maritime guided by major commodities like sugar, spice and other luxury products. When Europe tapped into the pre-existing markets and commodities , they were guided by both by the motivations of religion, royal sponsorship and private enterprises. European entrance into the Indian Ocean and Pacific would be greatly strengthened by its capacity to link its newly discovered global sources of land (resources), labor (coercive practices) and capital ( vast markets) which would help advance its agenda of establishing a favorable balance of trade. A document illustrating the ration of exports to imports from the Arab and/or Chinese markets would provide a stronger understanding to just how long it took Europeans (Spanish,

Portugese

, Dutch, French and English) to begin its ascension into the global marketplace.Slide14

SynthesisFollowing the first time the global economy got started, evaluating the commodities and political powers which controlled them would be the next transitions from the intensive hemispheric interactions whichStarted with “

Southernization

” and the rich spices, sugar and technologies 600-1450. With Silver becoming the first global commodity, the Columbian exchange and mercantilism being promulgated by Western European maritime forces, the silk route will die off and maritime trade will come to dominate the 1750-1900 periodization the new imperialism utilizing industrialized weapons, commodities and colonization only financed through capitalism and nationalism. This would lead to the true rise of Western Hegemony.