international trading

east india company (eic)

• 1600 founded by london merchants

  • to est english econ interests in Asia (esp Far East - Dutch competition) 

• est trading posts

• early missions struggled bc local rulers East Indies + India only agreed to trade in silver/gold (valuable - scarce/global demand)

  • x use for english goods

  • removal from england = against protectionism 

  • in return for spices, tea etc

• Royal Charter (gave it independent power) revoked by cromwell

  • concern at royalist leanings of governors  

  • effectively stopped it from trading → rival group took over eic’s possessions  

• '60 regained charter, privileges extended (over period of charle’s reign, saw it as v important) -

  • est own army (armoured ships built)

  • issue own coinage

  • acquire territories 

  • make war w/o govt consent 

• c’s portuguese wife given Bombay islands as dowry

  • c rented to eic for £10 a yr 

• by ‘80s attracted lots wealthy investors → further expansion

• new goods eg saltpetre (makes gunpowder), pepper  

triangular trade

• linked Europe, Africa, + the Americas

• basic system of transatlantic slave trade existed pre 1600s

• initial english involvement began 1500s

  • John Hawkin kidnapped/sold hundreds of West Africans

  • grew post this

• navigation acts - enabled english to replace dutch in their dominance over colonial trade

  • ⭡ sea power + development of trade outside europe eg caribbean

    • access to new goods gave plantation owners incentive to invest in slave labour to maximise production

    • by ‘60 labour shortages in no. colonies - buying slaves ⭡

      • mutually beneficial - slaver traders had market, plantation owners cld get lots cheap labour

    • by ‘60 slavery written into law by most American colonies

  • ⭡ provincial ports west coast (Bristol) - became slave trade centres

    • ⭡ urbanisation

• by 1700s britain = wrld’s biggest slave-trading nation 

royal african company (rac)

• est ‘72, given charter charles

• exploited power of royal navy to secure control african west coast

  • gave them monopoly over its slaving ports (combating dutch dominance)

• ‘80-88 transported c 100,000 ppl to N America/Caribbean

  • forced to help produce goods for trade

  • when arrived = branded w initials of company or company Governor (Duke of York - future James II)

• glorious rev → effectively leaderless

  • monopoly broken by William under pressure by parl

impact on econ

• ⭡ wealth/growth london

  • lots ppl = shareholders in rac (15 london lord mayors)

• gold taken from Africa contributed to Royal Mint

  • govt cld expand currency + produce more valuable coins

  • ‘Guinea’ coin minted

• ⭡ expansion of banking industries

  • those w capital ⭡ willing to use them for loans

  • merchants making longer journeys (⭡ insurance)