Exam Review Notes: Colonialism and Global Trade (1450-1750)

European nations such as Portugal, France, Great Britain, and the Netherlands expanded their territories primarily to showcase their power and influence on a global scale.

Colonies played a critical role in supplying vital resources and funding to their mother countries. This relationship was strictly dependent, wherein colonies could only trade with their owning nation. Consequently, the mother country exerted control over all trade activities and settled benefits derived from colonial resources.

Settlers received land and were tasked with managing the native populations on it. However, rather than fostering cultural exchange or cooperation, they primarily exploited these native populations for labor and profit.

The Mita System originated as a public service obligation among the Inca, closely resembling jury duty. Inca citizens would rotate responsibilities for government-driven projects such as road construction and harvesting. Spanish colonizers adopted this system, compelling native populations to provide mandatory free labor for their endeavors.

In the Spanish extraction of silver, while they immensely benefited initially, much of this wealth was utilized for purchasing foreign goods rather than investing in military advancements or redistributing wealth to the colonies themselves. Much of this expenditure was considered wasteful because it lacked strategic allocation, which could foster improvement in their colonies.

The overarching goal of colonial powers was to acquire valuable resources for trade, with sugar being particularly significant. This led to the establishment of large, single-crop plantations aimed at feeding and catering to both local and international populations. These plantations became integrated into a global trade network, cultivating essential crops and food sources including corn and rice.

Prior to 1492, global interaction was largely restricted to the Eastern Hemisphere. However, the period following 1492 marked the emergence of a truly global economy, characterized by all regions contributing imports and exports. Going forward, the anticipated wave of Industrialization is expected to exponentially accelerate the pace and scale of global economic activities, driven by technological advancements.