CHAPTER 14 Economic Transformations: Commerce and Consequence

What event initiated European empires in the Western Hemisphere?

Columbus's unknowing encounter with the Americas.

Who was the Portuguese mariner that first sailed to India?

Vasco da Gama.

What was the primary motivation for European involvement in Asian commerce?

The desire for tropical spices such as cinnamon, nutmeg, mace, cloves, and pepper.

What was a significant consequence of the Black Death for Europe?

The recovery of European civilization and growth in population.

Which European countries were learning to tax their subjects effectively during the fifteenth century?

Spain, Portugal, England, and France.

What was the role of Venice in the trade of Eastern goods?

Venice monopolized the European trade in Eastern goods, sending ships to Alexandria, Egypt.

What motivated the Portuguese to seek a sea route to India?

To bypass Venetian and Muslim intermediaries in trade.

What was the problem Europeans faced in paying for Eastern goods?

Few European products were attractive in Eastern markets, requiring payment in gold or silver.

What did the Portuguese voyages along the West African coast seek?

Direct access to African goldfields.

What did the Portuguese establish in the Indian Ocean?

Fortified bases at key locations such as Mombasa, Hormuz, Goa, Malacca, and Macao.

What was the nature of the Indian Ocean commercial network?

A vast network involving diverse participants including East Africans, Arabs, Persians, Indians, Malays, and Chinese.

How did the Portuguese military advantage affect their trade in the Indian Ocean?

Their ships could outgun and outmaneuver competing naval forces, allowing them to establish control.

What was the outcome of the Portuguese response to local resistance in Mombasa in 1505?

They burned and sacked the city, killing about 1,500 people and seizing textiles and carpets.

What was the primary concern of Europeans in Asia during the early modern era?

Trade, rather than territorial control.

What did Europeans believe about a Christian monarch in Asia or Africa?

They believed in the existence of Prester John, a mythical Christian king.

What characterized the European territorial control in Asia compared to the Americas?

Europeans controlled less territory in Asia, focusing more on trade than on empire.

What types of goods were in high demand from the East?

Chinese silk, Indian cottons, rhubarb, emeralds, rubies, and sapphires.

What was a significant factor in the growth of European cities during the fifteenth century?

The rise of economies based on market exchange, private ownership, and capital accumulation.

What was the impact of the Portuguese military technology on Indian Ocean trade?

It allowed them to dominate trade routes and establish fortified trading posts.

What was the significance of the Portuguese bases in the Indian Ocean?

They facilitated control over trade routes and access to valuable goods.

What were the main European powers involved in Indian Ocean trade?

Portuguese, Spanish, French, Dutch, and British.

What did the Portuguese learn about Indian Ocean merchant ships?

Most were not heavily armed and lacked cannons, making them vulnerable.

What was the role of piracy in the Indian Ocean trade network?

Piracy was a problem, despite many merchants trading openly.

What did the Portuguese seek in the Indian Ocean apart from trade?

They sought to continue the Crusades and combat a common Islamic enemy.

What was the economic condition of Europe during the early modern period?

Europe faced a persistent trade deficit, needing to acquire precious metals.

What was the significance of the silver deposits in Mexico and Bolivia for Europe?

They provided a temporary solution to Europe's trade deficit with Asia.

What characterized the European approach to trade in the Indian Ocean?

A focus on establishing trade networks rather than territorial conquest.

What action did the Portuguese commander take in Mombasa in 1505?

He burned and sacked the city, killing about 1,500 people and seizing textiles and carpets.

What did the king of Mombasa warn neighboring cities about?

He warned about a great lord who passed through, burning the town and showing extreme cruelty.

What is a trading post empire?

An empire aimed at controlling commerce through force rather than territorial control.

What did the Portuguese king title himself regarding the spice trade?

Lord of the Conquest, Navigation, and Commerce of Ethiopia, Arabia, Persia, and India.

What was required of merchant vessels by Portuguese authorities?

They had to purchase a cartaz (pass) and pay duties of 6 to 10 percent on their cargoes.

What route did the Portuguese partially block to the Mediterranean?

The traditional Red Sea route.

What was the outcome of the Portuguese control over the spice trade?

They never controlled more than half of the spice trade to Europe.

What role did the Portuguese gradually take in the Indian Ocean trade?

They became heavily involved in the carrying trade, transporting Asian goods to Asian ports.

What led to the decline of the Portuguese trading post empire by 1600?

Overextension and resistance from rising Asian states like Japan, Mughal India, and Persia.

Who were the first to challenge Portugal's position in the spice trade?

The Spanish, as they established themselves in the Philippine Islands.

What characterized the political structure of the Philippine Islands at the time of Spanish arrival?

Culturally diverse peoples organized in small and competitive chiefdoms.

What encouraged the Spanish to establish colonial rule in the Philippines?

Proximity to China and the Spice Islands, small militarily weak societies, and absence of competing claims.

What was a major aspect of Spanish rule in the Philippines?

A significant missionary effort that turned Filipino society into a major outpost of Christianity in Asia.

What was the response of the Filipino people to colonial oppression?

Short-lived revolts, flight to interior mountains, and migration to Manila.

What was Manila's status by 1600?

It became a flourishing and culturally diverse city with over 40,000 inhabitants.

What role did the Chinese play in the Spanish colony of the Philippines?

They became essential in the colony's economic relationship with China but faced hostility and discrimination.

What was the significance of the Dutch and English in the Indian Ocean trade?

They became major competitors, overtaking and displacing the Portuguese by organizing their ventures through private companies.

What were the British and Dutch East India Companies granted by their governments?

Trading monopolies and the power to make war and govern conquered peoples.

What regions did the Dutch and English focus on for their trading post empires?

The Dutch focused on Indonesia, while the English focused on India.

What was the role of the French company in the Indian Ocean?

They established a presence in the Indian Ocean basin beginning in 1664.

What year did the French company establish a presence in the Indian Ocean basin?

1664

How did the Dutch East India Company control spice production in the Spice Islands?

By seizing control of small spice-producing islands and forcing locals to sell only to them.

What was the fate of the population on the Banda Islands due to Dutch control?

The Dutch killed, enslaved, or left to starve nearly the entire population of about 15,000 people.

What was the price difference for spices sold by the Dutch in Europe compared to their purchase price in Indonesia?

They sold spices at fourteen to seventeen times the purchase price.

What was the British East India Company's strategy in India during the seventeenth century?

They established trading settlements in Bombay, Calcutta, and Madras, focusing on Indian cotton textiles.

How did the British secure their trading bases in India?

With the permission of Mughal authorities or local rulers, often through substantial payments and bribes.

What was the British response to the Dutch monopoly on the Spice Islands?

They focused on India instead, where they established trading settlements.

What major goods did Dutch and English traders deal in during the second half of the eighteenth century?

Bulk goods such as pepper, textiles, tea, and coffee.

How did the European presence in Asia compare to their presence in the Americas or Africa?

The European presence was less significant in Asia, with limited political control.

What was the Tokugawa shogunate's view of European traders by the early seventeenth century?

They viewed Europeans as a threat and expelled Christian missionaries.

What was the Closed Country Edict of 1635 in Japan?

It isolated Japan from European contact, allowing trade only with the Dutch at Dejima.

What was 'Dutch learning' or Rangaku in Japan?

Cultural exchange with the Dutch that helped Japan modernize in the nineteenth century.

What role did the samurai and daimyo play during the Tokugawa shogunate?

They were feudal lords and warriors who initially welcomed European traders.

What was the impact of European trade on the local economy of the Spice Islands?

The local economy was shattered, and the people were impoverished.

What was the primary focus of British merchants in trade?

Indian cotton textiles, which became popular in England and its American colonies.

What was the relationship between the Dutch and the local population in the Spice Islands?

The Dutch exploited the local population for labor and controlled their production.

How did the British East India Company differ from the Dutch East India Company?

The British were less financed and excluded from the Spice Islands, focusing instead on India.

What was the consequence of the British plundering a Mughal ship in 1636?

British East India Company officials were detained and forced to pay a fine.

What was the significance of the wall painting titled 'The East Offering Its Riches to Britannia'?

It represented the European view of their trade relationship with Asian societies.

What did the Dutch do to maintain their monopoly on spice trade?

They used violence and coercion against local populations.

What was the impact of the British gaining control of the Arabian Sea and Persian Gulf?

They largely replaced the Portuguese in those regions.

What was the attitude of the Mughal Empire towards British traders?

They were powerful and did not allow British to practice 'trade by warfare' as the Dutch did.

What was the main reason for the decline of the local economies in the Spice Islands?

The monopolization of spice trade by the Dutch led to impoverishment.

What was the role of the Dutch planters in the Banda Islands?

They replaced the local population and used slave labor to produce nutmeg.

What was the result of the Tokugawa shogunate's policies on Christianity?

They executed missionaries and suppressed Christianity among the Japanese.

What was the role of Japanese traders in Southeast Asia during the early seventeenth century?

They operated similarly to European traders, often using force to support their commercial interests.

How did the Tokugawa shogunate respond to Japanese merchants operating abroad?

The Tokugawa shogunate disavowed any responsibility for or connection with these merchants.

What did the Tokugawa shogun request from Cambodian officials regarding Japanese merchants?

He requested that they punish Japanese merchants for their crimes and damage caused in Cambodia.

Which other Asian traders continued to thrive in the Indian Ocean despite European dominance?

Arab, Indian, Chinese, Javanese, Malay, and Vietnamese traders.

What was the significance of Chinese merchants in Southeast Asia during the early modern era?

They dominated the growing spice trade between Southeast Asia and China.

What role did women play in Southeast Asian trade?

Many women were involved in international trade, continuing a long tradition.

Who was Virji Vora and what was his impact on trade in India?

Virji Vora was a wealthy family firm leader who monopolized specific products and dictated terms to European trading companies.

What was the average interest rate charged by Virji Vora to European traders?

Interest rates ranged from 12 to 18 percent annually.

What was the main feature of the global trade of silver in the early modern era?

It created a genuinely global network of exchange.

What discovery in the mid-sixteenth century significantly increased the supply of silver?

Rich silver deposits were discovered in Bolivia and Japan.

What percentage of the world's silver was produced by Spanish America during the early modern era?

Approximately 85 percent.

What was the role of the Philippines in the global silver trade?

It served as a critical link for Spanish shipments of silver to Asia.

How did silver affect trade between the Americas and Asia?

It initiated a web of Pacific commerce that grew over the centuries.

What was the significance of the Spanish silver coin known as a piece of eight?

It was used as a medium of exchange in North America, Europe, India, Russia, and West Africa.

How did the demand for silver change in China during the 1570s?

Chinese authorities consolidated tax levies into a single tax that had to be paid in silver.

What was the effect of the new demand for silver on its value?

The value of silver skyrocketed, allowing foreigners to purchase more Chinese goods.

What did a Portuguese merchant note about silver in 1621?

He noted that silver wanders throughout the world before flocking to China, where it remains.

What was the impact of silver on global commerce?

It facilitated extensive trade networks and economic connections across continents.

What were the routes of silver trade from Potosí?

Routes included travel to Lima, Veracruz, Spain, and then to various global destinations including India and Russia.

What was the significance of the silver mines of Potosí?

They were a major global source of silver and contributed significantly to the world economy.

What were the conditions like for workers in the silver mines of Potosí?

Workers faced brutally hard conditions and exposure to toxic mercury, leading to many deaths.

What was the relationship between silver and the spice trade?

Silver was used to pay for spices in Southeast Asia, linking it to global trade dynamics.

How did the silver trade influence European economies?

It allowed Europeans to pay for desired Asian goods, impacting their economic structures.

What was the 'silver drain'?

The movement of silver primarily to China, where it was in high demand.

What was the effect of silver on the global economy during the early modern era?

It transformed economic relationships and trade practices worldwide.

What was Potosí known for during the colonial era?

It was a major global source of silver and the largest city in the Americas.

What were the working conditions like for miners in Potosí?

They were horrendous, leading to many deaths and injuries among the workers.

How did the silver trade affect the economy of Spain?

It enriched the Crown but generated inflation rather than real economic growth.