4.5: Maritime Empires Develop

Economic Strategies

Joint-Stock Companies

• Formed under the principles of mercantilism

• In a joint-stock company, exploration and expansion was not financed by governments but rather by private investors who pooled their money in to say, buy a ship
• The investors would share the profits and losses
• Made these expeditions less risky as if it was a loss, the loss would be divided amongst the investors

• Two big joint-stock companies were the British East India Company and the Dutch East India Company

• Not every country adopted this model
• The governments of Spain and Portugal continued to heavily finance expeditions

Silver & The Commercial Revolution

• The Commercial Revolution marks:
• Rise of mercantilism
• European overseas exploration and trade
• Worldwide population growth (Thanks to crops from the Columbian Exchange)
• Inflation (partly because of the ⬆️ of gold and silver in circulation in the world economy)

• Commercial Revolution affects all regions of the world

• Goods also start to be traded for gold and more importantly silver, not with other goods

Growing Importance of Silver

• The silver mined from the Americas was crucial for not only the Spanish economy but also for the global economy

• Silver became the primary currency for international trade, especially in Asia

• The rise of silver circulating also caused inflation
• Contributed to social unrest & economic inequality

• The rising importance of silver also gave the Spanish a massive advantage
• Helped Spain to maintain a powerful army and bureaucracy
• The Spanish crown reserved 1/5 of the silver mined for themselves
• Known as the quinto
• Was the most profitable thing the Spanish crown got out of the Americas
• Also gave them economic leverage over the Chinese because they wanted silver

Triangular Trade

• Manufactured goods: Europe → West Africa
• Ex: gunpowder weapons

• Slaves: Africa → Americas

• Raw materials: Americas → Europe
• Ex: sugar, molasses, lumber

Change and Continuities in Trade Networks

Indian Ocean Trading Networks

• Merchants in the Indian ocean trading networks continued to do business as usual

• For example, merchants were already used to paying taxes and fees to states that controlled sea lanes and ports
• Whether it be Muslim or Portugal Malacca doesn’t really matter

• If fees did increase merchants would just use a different trading center

New Monopolies

• A monopoly is when one entity has total domination over a market

• Ex: Spanish establish monopoly on tobacco and grew very wealthy

Ongoing Regional Markets

• Example of a continuity

• Traditional regional markets continued to flourish
• Examples: Chinese silk and porcelain, Indian cotton

Cultural Changes of Sea-Based Expansions

African Slave Trade

• Some African kingdoms were severely weakened by the slave trade but it continued due to how profitable it was

• African Slave Trade also depleted populations
• However, Columbian Exchange brought foods like yams and maize, which caused population growth in Africa
• So not only was the depletion offseted, but overall, Africa’s population actually grew

Change in Gender Roles

• As men were often enslaved, a gender imbalance rose in West African states
• Led to more women than men

• Women had to assume duties that had traditionally been men’s jobs

• Rise in polygamy (when one man takes multiple wives) due to the “shortage” of men

Belief Systems in the Americas

• African slaves combined their religious beliefs with Christianity to create new syncretic religions like Vodou and Santería

• Catholic missionaries like the Franciscans and Jesuits also came to Latin America to spread Christianity
• Were so successful that even today most Latin Americans are Catholics

Virgin of Guadalupe

• Example of religious syncretism

• Developed in Mexico, the belief in the virgin is of a fusion of indigenous and Catholic elements

• It got natives to accept Catholicism and take pride in their culture

• Still a very important symbol of Mexican identity

Global Interactions and Religious Conflicts

• Conflict between Sunnis and Shias worsened due to conflict between Ottomans and Safavids

• Persecuted Protestant sects, such as the Puritans, sought religious freedom by emigrating from England to the Americas