Unit 4: Topic 5 - The ECONOMICS of EMPIRE Building

Unit 4: Topic 5 - The ECONOMICS of EMPIRE Building

Economics of Empire Building

  • Mercantilism - state-driven econ system —> focuses on the buildup of mineral wealth by maintaining a favorable balance of trade (the biggest piece of the “pie”)

    • more exports than imports

  • Joint-Stock Companies

    • limited liability (only loss in the amount invested)

    • chartered by state (gov approved)

    • funded by a group of investors (privately funded)

  • merchant & state —> mutual interdependence

  • Dutch East India Company

    • chartered in 1602

    • investered became rich

    • Dutch gov got to expand power & influence in Indian Ocean

  • Spain & Portugal were funded through the state (influence declining)

Trade Networks: Change & Continuity

  • Change

    • Atlantic System

    • Sugar trade

    • silver (Potosi mine)

      • satisfied Chinese demand for Silver

      • more profit

    • coerced labor

      • native, indentured servitude, enslaved

  • Continuity

    • Afro-Eurasian markets thrived

    • Asian land routes

    • peasant (farmers) & artisan labor (hand-made stuff)

Social Effects

  • gender imbalance (African slave trade)

  • change in family structure

    • polygyny in West Africa (due to less male population)

  • cultural synthesis

    • African slave adaptation of creole (mixed language)

Changing Belief Systems

  • Portugal & Spain missionary in colonies

  • Enslaved people brought their own religions (Islam)