Economy during the 1450-1750 In the previous era (600-1450 C.E.), sometimes called the post-classical period, we explored the rise of new civilizations in both hemispheres, the spread of major religions that created cultural areas for analysis, and an expansion of long-distance trade to include European and African kingdoms.

Europeans and Asian Commerce: First goal of Europeans = gain access to tropical spices: cinnamon, nutmeg, mace, cloves, and pepper

Other products of interest = Chinese silk, Indian cotton, rhubarb, emeralds, rubies, and sapphires

Controlling trade would allow national monarchies to gain greater access to capital for empire building at home and overseas

The East India Companies

The British and Dutch both entered the Indian Ocean in the early 17th century

Both organized joint-stock trading companies

Corporations or partnerships involving two or more people.

Stocks are issued by the company in return for financial contributions

Shareholders are free to transfer their ownership by selling their stockholding to others.

Benefit: offers the protection of limited liability against the company's debt

Portuguese Commerce: The Portuguese, led by Vasco da Gama, were the first Europeans to reach the Indian Ocean

They joined a vast, diverse, and somewhat disorganized trade network

They had a hard time trading because no one wanted their crude European items…

…Until they learned that most Indian Ocean vessels were not well armed

No regional power controlled trade there

Portugal's Goal: The Portuguese, led by Vasco da Gama, were the first Europeans to reach the Indian Ocean. They joined a vast, diverse, and somewhat disorganized trade network.

Trade Overall in the 1450-1750: The world economy grew and became genuinely global. The Atlantic and the western Pacific were the two main trade centers. Silver from the Americas and slaves from Africa played major roles in the global economy. Western Europeans controlled trade networks, but Chinaz was still at the center of the world trade.