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Resurgence of Europe
Between the 14th and 18th centuries, life in Europe
drastically changed due to a renewed interest in the rest of the
world, and subsequently, an increase in
trade. The initial
motivating factor for the renewed interest was the series of
holy wars known as the
Crusades. Fighting men returning from the wars brought back many different products. These
products became the basis for early trade which expanded over
time. Along with trade goods came new business practices
and a shifting in the European way of life.
Resurgence of
Trade
In the late 1300s,
Italian City States became the center of the
resurgence of trade. This was due in
part to their location on the Mediterranean, which was a
economic super highway during this time period. Also,
these city states never experienced the full effects of medieval
life because of frequent contact with the Islamic Empire during
its golden age. Venice was the richest and most
powerful of these states. From Italy, goods were shipped to
large
trade fairs, which were located on major trade
route crossroads. The larger of these trade fairs evolved into
towns, with a change in the way of life for their inhabitants.
Commercial Revolution
The growth of trade, towns, and cities resulted in a
commercial revolution. A new
social class emerged composed
of
merchants,
artisans, and traders. This new social class
was called the
Middle Class. The middle class quickly
gained power and influence as
feudalism came to and end, and the
economies of Europe became reliant on money instead of service.
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Production
and the Economy |
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Guilds |
Trade associations of craft workers and
merchants. All workers in a single craft
would form together to set standards on prices
and quality. Guilds dominated economic
life during this period and were the main mode
of production. |
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Capitalism
&
the Market Economy |
Capitalism and Market Economies are based on
trade and capital, which is money for
investment. Higher demand for a product means
higher prices and higher profits for traders and
merchants. Lower demand means lower prices
and lower profits. |
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New
Business Practices |
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Partnerships
&
Joint Stock Company |
Used to raise capital for
larger projects. Less financial risk to
the individual |
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Banks |
Provided money lending services as well as issuing
Bills of Exchange. |
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Bills of Exchange |
Worked like modern checking account.
Merchant would deposit gold and receive a Bill of
Exchange. Could then turn that in for gold
at other banks. Easier and Safer than
carrying gold along trade routes |
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Insurance |
Paid a small fee to insure goods during travel.
If goods were damaged or lost, insurance company
pays replacement costs. If arrive safely,
insurance company keeps the fee. |
The Commercial Revolution and the resurgence of trade
across Europe completely reshaped society. These
changes resulted in the decline of feudalism, and a
revival of arts, literature, and science known as the
Renaissance.
Exploration and Discovery of the New World
The resumption of trade following the
Middle Ages in Europe
resulted in a demand for goods from Asia. Trade routes
established across the Mediterranean and through the
Middle East were soon disrupted by the expansion of the
Ottoman Empire. Europeans were forced to seek
alternative ways of
importing and
exporting goods to and from
Asia. The result was an exploration of water routes
to Asia, and eventually the discovery of the Americas by
the Europeans.
In the early 1400s, Europeans began exploring the
west coast of Africa in search of an all water route to
Asia. These early explorations were led by the
Portuguese. In 1488,
Bartholomeu Dias rounded
the Cape of Good Hope at the southern tip of
Africa. In 1498,
Vasco Da Gama established
an all water route to India. The success of
these explorations led Spain to begin its own voyages.
In 1492,
Christopher Columbus crossed the
Atlantic Ocean and discovered the Americas for Spain.
These discoveries resulted in Europe establishing
colonies throughout the Americas, which were used to
further their economic power. Columbian
Exchange
A major result of the colonization of the New World was
a vast exchange of people, plants, animals,
ideas, and technology. This is known
as the Columbian Exchange, because it
starts with Columbus. These products were shipped all
around the world to such places as Africa, India, and Asia.
The infusion of New World foods into China allowed their
population to continue to grow.
| Columbian
Exchange |
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From Old World to New World |
From New World to Old World |
- wheat
- sugar
- bananas
- rice
- grapes
- horses
- pigs
- cattle
- sheep
- chickens
- smallpox
- measles
- typhus
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- corn
- potato
- beans
- peanuts
- squash
- pumpkin
- tomatoes
- avocados
- chili pepper
- pineapple
- cocoa
- tobacco
- quinine (a medicine for malaria)
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Triangle Trade and
Slavery
As colonies in the Americas grew, so did the need for
cheap, reliable labor. At first, European settlers
attempted to enslave Native Americans. This
was a failure because Native Americans were unsuited to
plantation work. Also, it was easy for them to escape and
return to their people. Europeans then turned to Africa
for its labor source. Starting in the 1500s, large
numbers of Africans were bought and transported to the Americas
for agricultural work. This trade eventually became very large
and profitable and was known as the
Triangle Trade due to goods and people moving from
Europe to Africa to the Americas. The
slave trade resulted in the African
Diaspora,
which is the large, forced migration of millions of
people.
Mercantilism
Mercantilism is the policy of building a nation's wealth
by exporting more goods than it imports. Colonies
were instrumental in this policy as they supplied their
parent nations with
raw materials that were used to
produce finished goods, and then exported back to the
colonies. Colonies not only served as a source for
the raw materials, but also as an exclusive market for
the parent country. The result of this policy was
the further weakening of the feudal system and the rise
of the Middle Class as the dominating force in Europe.
African Trading Kingdoms
The African Trading Kingdoms
consist of three main cultures, Ghana, Mali,
and
Songhai, all located in West Africa. All
three kingdoms maintained vast trading networks
across the Sahara desert and into the Middle East and
North Africa. The main export was gold,
which made each kingdom wealthy and strong, and provided
them with the conditions necessary for cultural and
intellectual achievement
Commerce
Ghana, Mali, and
Songhai established trade routes that were in use for
centuries. Early trade
networks were setup inside of Africa. As these
networks grew and became more prosperous, they expanded
to include the Mediterranean and then eventually Europe.
Trade goods included gold, salt, cooper,
iron, various minerals, and agricultural
products. A negative effect of this
interaction was the start of the slave trade, when
Europeans needed a cheap, reliable labor source for
their New World colonies.
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