Chpt. 16, The World Economy Flashcards
world economy
an economy that extended over the entire map and was in fact global; originated with the discovery of the Americas by Columbus
Cape of Good Hope
located at the southern tip of Africa, it was first circumnavigated by the Portuguese in search of a direct route to India
Christopher Columbus
a Genoese captain in service to the king and queen of Aragon and Castile; he successfully sailed to the New World in 1492, initiating European discoveries in the Americas. He opened up the world, and especially Europe, to the New World, allowing for the settlement of colonies, which had extremely major economic affects by providing two entire new continents for settlement, trade, and exploitation
Ferdinand Magellan
This man was a Spanish captain who in 1519 initiated the first circumnavigation of the globe, as well as claiming the Philippines for Spain. Although he himself died on the voyage, his men sailed on and completed the trip. This was important economically because by demonstrating that the earth was round, merchant sailors were emboldened, and because the Philippines would prove a source of new crops such as American corn and potatoes.
Dutch East India Company
This was a joint stock company that obtained a government monopoly over trade in Asia, and which acted as a virtually independent government in the regions that it claimed. For some time, this company effectively ruled the island of Taiwan off the coast of China. Chartered companies like these were important because they regulated economic conditions and trade in the colonies, where the extension of direct jurisdiction by the colonizing country would be rendered extremely ineffective by the vast distance of the oceans.
British East India Company
This was a joint stock company that obtained a government monopoly over trade in India, and which acted as a virtually independent government in the regions that it claimed. Chartered companies like these were important because they regulated economic conditions and trade in the colonies, where the extension of direct jurisdiction by the colonizing country would be rendered extremely ineffective by the vast distance of the oceans.
Battle of Lepanto
This was a naval battle between Spain and the Ottoman Empire in 1571 that resulted in Spanish victory; although the Ottomans were able to rebuild their fleet within a year’s time, they had lost power on the seas, and henceforth were unable to challenge the Europeans on larger international routes. This benefitted Europe economically by allowing it to engage in more robust trade, as they no longer had to worry about being beset by the Ottomans whenever they entered Islamic waters. It also allowed them to take advantage of trade opportunities that had previously belonged to the Ottomans.
core nations
nations, usually European, that enjoyed profit from the world economy; controlled international banking and commercial services such as shipping; and exported manufactured goods for raw materials
mercantilism
An economic theory that stressed the government’s limitation of imports from other nations and internal economies in order to improve tax revenues that was popular during the 17th and 18th centuries in Europe. Economically, these policies altered the flow of products so that they went even more exclusively out of Europe; in this, they both reflected and encouraged the new world system.
Vasco de Balboa
He was the first Spanish captain to begin settlement on the mainland of America in 1509; his initial settlement eventually led to the conquest of the Inca and Aztec Empires by other captains. This was important because these initial exploits created the opportunity to establish colonies on the mainland area, which were Spain’s primary economic interest in the New World.
Francisco Pizarro
This man led the conquest of the Inca Empire of Peru beginning in 1535; by 1540, most of the Inca’s possessions had fallen to the Spanish.
New France
another term for the French colonies in North America; they extended from the St. Lawrence River along the Great Lakes and down the Mississippi River valley system
Seven Years’ War
This war was fought both in continental Europe and in overseas colonies between 1756 and 1763; it resulted in Prussian seizures of land from Austria and English seizures of colonies in India and North America. It has sometimes been referred to as the first world war, as it was fought in Europe, in North America, and in India. It had an economic impact by realigning which imperial powers had control over which colonies, altering the distribution of colonial resources among the major European powers.
Treaty of Paris
arranged in 1763 following the Seven Years War, this treaty granted New France to England in exchange for the return of a French sugar island in the Caribbean
Cape Colony
a Dutch colony established at the Cape of Good Hope in 1652 initially to provide a coastal station for the Dutch seaborne empire; by 1770, settlements had expanded sufficiently to come into conflict with Bantu farmers
