European Expansion1450 - 1700

The Big Questions Why do nations expand?

What impact does exploration and expansion have on economics?

What impact does exploration have on society's values and ideals?

Portugal Not a wealthy country but had a history of

seafaring Prince Henry played a major role in the early

phases of exploration Objectives:

Military glory Christianize Muslims Gold, slaves, and overseas route to India for

spices

Portugal Established trading posts on the African coast Diaz – Cape of Good Hope Vasco da Gama – succeeded in going around

the Cape of Good Hope to India failed to establish any trading alliances

Lisbon capital for import of Asian goods 1511 Defeated Muslim controlled port city-

states in India – laid the foundation for Portuguese imperialism (16th and 17th cent.)

Spain Columbus embodied the goals of Spanish exploration

Spread of Christianity (converting Muslims and others) “The Enterprise of the Indies” direct westward route

to Asia Glory (for himself, Spanish dominance)

Over the next decades the Spanish would follow a policy of conquest and colonization in the New World, rather than equal exchange

Spanish Explorers Columbus Hispaniola and Cuba Amerigo Vespucci South America (modern

day Venezuela) Ferdinand Magellan circumnavigated the

globe, took 3 years (he died in the Philippines on the way)

Hernado Cortes Mexica Empire (interior Mexico)

Francisco Pizarro Incan Empire (interior Peru)

Spanish Conquests Columbus Forcibly subjugated the island of Hispaniola Cortes Conquered Tenochtitlan and killed Montezuma II

Tenochtitlan was a sophisticated civilization with advanced math, astronomy, engineering, complex social system, and with oral poetry and historical traditions

Led to Spanish subjugation of Mexico, widespread disease, and a decrease in population

Pizarro Conquered Cuzco (city) and Atahualpa (leader) Incan Empire was highly sophisticated The defeat led to decades of violence and disease and

ultimate Spanish rule

Treaty of Tordesillas Both Spain and Portugal have claims in the

Atlantic Treaty was signed to settle competing claims to

Atlantic discoveries between Spain and Portugal

Spain got the west Portugal got the east

Treaty of Tordesillas

Spanish Established the encomienda system

System whereby the Spanish crown granted the conquerors the right to forcibly employ groups of Indians; it was a disguised form of slavery

Columbian Exchange Exchange of animals, plants, and diseases

between the Old and New Worlds

Columbian Exchange Europe brought over:

Sugar, rice, bananas, wheat, grapes, olives Domesticated animals horses, cattle, sheep, dogs,

pigs, chickens, goats Smallpox, measles, bubonic plague, influenza, typhus,

diphtheria, scarlet fever

Europeans brought back: Corn, tomatoes, pineapples, potatoes, beans, ect. Turkeys Syphilis (possibly)

Columbian Exchange

England First colony Roanoke in 1585, vanished Jamestown 1607 Later competed with the Dutch for territory (N.E. to

Virginia) English settlements hugged the coastline did not

explore into the mainland English Expansion Objectives:

Religious freedom for radical Protestants Production of tobacco (growing market in Europe)

France French Objective Trade Samuel de Champlain founded Quebec 1608 Explored:

Waterways of the St. Lawrence Great Lakes Mississippi Canada Gulf of Mexico

French territory stretched from Canada down to Louisiana

France Also had territories in the West Indies

(Caribbean) Originally were bases for plundering Spanish

shipping eventually some areas became French colonies

Also competed with England for over a century Seven Years War (1756-1763) France lost Canada and Louisiana

Regained Louisiana in 1800 and sold it to the U.S. in 1803

The Netherlands (Dutch)

Traveled east and west, objective was to trade West:

Henry Hudson traveled to the U.S. South America

East Established the Dutch East India Company

dominant trading company in Europe Australia Africa – traded in slaves

Exploration and the Economy

Exploration brings Europe new lands and resources Changes in business & trade, money & economic life 1450-1700 = Commercial Revolution

Mercantilism National economic policy aimed at accumulating monetary

reserves through a positive balance of trade, especially of finished goods

Manor centered town centered now state centered Exploration leads to European rulers rise in power

Mercantilism 1. Accumulation of Wealth

State is building wealth gold and silver 1600s ruler’s power judged by luxury of royal

court and size of the army

2. Trade with Colonies Colonies = source of profit for home country

Colonies supply wealth (gold, silver, raw material) to home country

Colonies buy goods from home country

Mercantilism Rise of Joint-Stock Companies

Shipping from Europe to Asia or America dangerous, time-consuming, expensive

To pay for trading voyages Individuals bought stock shares – investors/part-

owners Increase in money, decrease in risk to individual

investors

Dutch East India Company, English East India Company

Economy and Changing Society

Wealth now means money and good NOT land Rich middle class merchants spend money to

make money lack of luxury or savings Rulers and aristocrats looked down on money-

makers remember, power is judged by excess in luxury and money!!

Huge competition between nations for gold and silver! Lots of attacks on other nations’ ships!!

Economy and Changing Society

Most of the gold and silver went to Spain and Portugal Wealthy Europeans bought the increase in goods & food

BUT products become scarce and prices rise! Because of an increase in European population there is

a need for more food and goods

This leads to INFLATION A sharp, steady rise in prices caused by excess demand

This will cause social changes across Europe

Economy and Changing Society

Inflation affects different groups: Landowning nobles needed money to buy the

same goods got fixed rent from peasants Not good for the peasants many lose their land,

forced to work for low wages Merchants profited by charging high prices for

goods sold

Demand for goods is higher than European supply causes an increase in foreign trade for goods

Capitalism Capitalism – economic system based on

private ownership and use of capital

Capital – wealth in the form of property/money used to make more money (land, tools, machinery, ships, shops, ect.)

Capitalism During the Late Middle Ages new business

practices led to capitalism (in Italy) Profits from trade and interest on loans Italian

merchants built up their capital They used it to reinvest in their business or other

enterprises They pooled money and expanded business As business activity increase, merchants developed

book keeping system to track money flow Banking and use of credit made business dealing

much easier

Capitalism 1. Private Ownership = Free Enterprise

People free to do what they want with their money Bank for interest, start a business, invest in a

company, ect.

2. Profit Motive – Desire to make a profit Law of Supply and Demand

Demand is greater than supply = price increase Supply is greater than demand = price decrease

Company produces goods to make a profit for its investors or owners

Capitalism 3. Markey Economy

Money value placed on all property – land, goods, time, labor

Because price and quantity decisions are made in a free market people must adhere to the law of supply and demand

NOTE: Mercantile Capitalism of 1600-1700s differ from modern capitalism! No large corporations which made modern

capitalism possible