5.2 Rise of Global Markets

what happened to economic competition between European states as a result of the Columbian exchange and the triangular trade

the economic competition in Europe began to increase (as well as the indian ocean trade)

what was the main motivations for Europeans to go explore during the age of exploration?

to find sea-based routes to the spice islands of Southeast Asia

quick summary of the age of events

Portugal was the first major European state to trade in the Indian Ocean trade —> Vasco de Gama was the first Portuguese sailor who established the Portuguese’s presence in the Indian ocean trade where they dominated —> after that the Dutch, English, and the French are going to compete to get a part of the trade

how are economies and competitions changing during this period (compared to before during the age of exploration)

we see this globalized economy and the competition it created accelerating and leading to conflict as each of these maritime powers vied for dominance

what did the Dutch, English, and French do to challenge the Portuguese

they created companies to challenge the Portuguese

Dutch: created the Dutch East India Company (which is a joint-stock company aka a private stock company which raised money by selling shares to investors) —> made them VERY successful (but ended in tatters by the end of the 1700s because of the British East India Company)

English: created the British East India Company (struggled initially but because the Mughal Empire was in decline, the English inserted themselves and eventually gained the entire subcontinent as a colonial possession which basically gave power to the British government not just the company/trade)

French: Louis XIV created the French East India company under the influence of John Baptiste Colbert —> wanted power and influence over British in India but because of the peace treaty, that ended the war of Austrian Succession, removed the French and Britain’s dominance was restored

Portuguese vs Dutch during the trades in the Indian Ocean

Portuguese: set trading posts —> not colonial

Dutch: subjugated the people and made them subservient and took over most of the East India

Atlantic Ocean Trade

who was dominant in the maritime trade power in the Atlantic + who disliked this? what did they do?

the Dutch Republic was the dominant maritime trade power.

Britain didn’t like this so they established the Navigation acts which caused economic warfare

Navigation Acts

it said that any goods being shipped to Britain or its colonies had to be shipped on British vessels —> guaranteed a monopoly for British merchants and made them fabulously wealthy but weakened Dutch dominance in the Atlantic trade —> France became Britain’s biggest economic rival

war of spanish succession causes, effects, how other countries responded, etc

the balance of power on the European continent (involving France and Spain)

other countries including Britain fought against it to settle it in the Treaty of Utrecht in 1713

in the treaty France had to give up its Colonial Holdings to Britain (Newfoundland, Nova Scotia, and the Hudson Bay territory) & Spain had to give Britain control of its West African slave trade, Asiento

ALL OF THIS RESULTED IN MASSIVE ECONOMIC POWER FOR BRITAIN

Asiento

Spain’s West African slave trade which had to be given to Britain to control after the Treaty of Utrecht