2.1 - The Silk Roads

key terms/events and significance

Magnetic Compass, Rudder & Junk

• Definition:

  • Innovation / invention

  • Improved commercial practices

• Significance: Made travel more efficient and helped navigation easier

Kashgar & Samarkand

• Definition: Cities along the routes that were watered by rivers became thriving centers of trade

• Significance:

  • Centers of cultural and goods exchange due to their position

  • Stop and resting places for travelers

Caravanserai

• Definition:

  • Inns for travelers to stop by

  • Often about 100 miles apart—the distance camels can travel before they need water

• Significance:

  • Cultural exchange from merchants / travelers of various places

  • Oases that were established after the Silk Road stabilized

  • Travelers can rest and exchange animals for fresh ones

Money Economy

• Definition: China’s economy system that uses money as a medium for exchange

• Significance:

  • Led to the development of a system of credit called “flying cash”

  • Help with money management in China

Flying Cash & Paper Money

• Definition: 

  • A system of money credit

  • Money was the currency instead of coins

• Significance:

  • Set precedent for future banking models

  • Encouraged and supported trade thanks to its convenience

Banking Houses & Bills of Exchange

• Definition: 

  • Locations for exchanging cash

  • A document stating that the holder can get the promised payment on a set day

• Significance: the stability of institutions and its convenience supported the increased trade

Hanseatic League

• Definition: 

  • First common market and confederation of merchant guilds

  • Commercial alliance formed by cities in northern Germany and Scandinavia

• Significance:

  • Organized European’s trade to acquire more luxurious goods from Asia

  • Drove out pirates and monopolized trade

Explain the causes and effects of growth of trade networks such as the Silk Roads.

The rise of the Mongol Empire and technological advancements helped to facilitate trade along the Silk Roads. As a result, many cities became thriving centers of trade, oases emerged for merchants or travelers to rest, a new innovative money economic system developed that set precedent for modern banking houses.