Maritime Empires and Economic Strategies
The period from 1450 to 1750 saw the rise of maritime empires and significant changes in global economic strategies. This era, known as the Commercial Revolution, marked a shift towards trade-based economies centered on gold and silver.
Vocabulary: Commercial Revolution - The transformation to a trade-based economy with gold and silver as the primary measures of wealth.
Economic struggles during this time led to the development of mercantilism, where wealth was measured by precious metals. This led to increased capital accumulation and the rise of joint-stock companies, which helped to limit financial risks for investors.
Highlight: The Dutch East India Company, a joint-stock company, became incredibly profitable through its control of the spice trade in Indonesia.
The Dutch East India Company's worth was immense, making it one of the most valuable companies in history. Its rise and influence were facilitated by Dutch commercial prowess, including faster and lighter ships that gave them an advantage in trade routes across the Americas, Indonesia, and Latin America.
Example: The Dutch established the first stock exchange in 1602, further solidifying their financial dominance.
The triangular trade system emerged as a key economic strategy, connecting Europe, Africa, and the Americas in a cycle of trade that included manufactured goods, slaves, and cash crops.
Definition: Triangular Trade - A trading system involving three regions, typically Europe, Africa, and the Americas, each supplying goods or labor to the others.