Unit 4: Topic 5 - Maritime Empires Maintained and Developed Flashcards
Mercantilism
Mercantilism is an economic practice based on the benefits of profitable trading. The government regulates the nation’s economy to generate wealth and augment the nation’s power at the expense of other countries.
Three Principles of Mercantilism
- Belief that the amount of wealth in the world is relatively static, meaning financial wealth was considered limited due to the rarity of precious metals. Thus nations sought to secure as much power and wealth at the expense of other countries.
- A country’s wealth is best ascertained by the number of precious metals they possess. Metal such as gold was heavily desirable since gold represented power and wealth. Gold was used to pay for soldiers, for seafarers’ exploration of resources, and expand the empire. A lack of gold means the downfall of a nation.
- Ensure that exports exceed imports as a means of obtaining a favorable balance of trade to yield precious metals.
What was the purpose of American colonies in relation to mercantilism?
The purpose of American colonies in relation to mercantilism was to supply raw materials for the mother country. Goods that American colonies would import consisted of grain, sugar, and tobacco. They also served as a market for finished goods made in England.
Joint-stock companies
Joint-stock companies are large business organizations usually supported by government charter. These companies were created to pool enormous amounts of resources and risks involved in overseas exploration and colonization. Investors in these joint-stock companies would share the profits and losses of the venture, reducing risk as it wouldn’t be one singular person sustaining all the losses.
The British East India Company
The British East India Company was the first joint-stock company established in 1600 to develop trade in India and Southeastern Asia. This joint-stock company eventually led the expansion throughout India and controlled large portions of India following the weakening of the Mughal empire.
The Dutch East India Company
The Dutch East India Company was established in 1602, following the British East India Company. This joint-stock company held a monopoly on the spice trade between the Netherlands and Southeast Asia. And within seventy years, it was one of Europe’s most largest and successful trading companies. However, financial and political troubles led to its dissolution in 1800.
The Virginia Company
King James I established the Virginia Company in 1606 in order to develop settlements and colonies along the Atlantic Coast of North America.
Triangular Trade
Mercantilism led to the emergence of triangular trade, a system of trading to and from the Americas, Europe, and Africa. Europe supplied the Americas and Africa with finished goods, the Americas supplied Europe and Africa with raw materials, and Africa supplied the Americas with enslaved laborers.
Navigation Acts
The Navigation Acts were a series of laws that imposed restrictions upon colonial trade. This law stated that all colonial exports had to be transported in English ships and all colonial imports had to first pass through English ports. British economic policy aimed to strengthen British state power and finances by restricting colonial trade to England and decreasing dependence on foreign imported goods.
Monopoly
A monopoly is when one entity has total domination over a particular market. In this case, monopolies granted certain merchants and government exclusive trading rights at given ports.
Commerial Revolution
The creation and development of new business practices in European economy during the 16th-18th century as a result of increased trading. Examples of these new business practices are mercantilism and capitalism.
Muslim–European rivalry in the Indian Ocean
Trade drastically increased with India, Omani merchants prospered, and Omane merged as a key player in the Indian Ocean trade. Europeans wanted to be on top of the Indian Ocean trade and caused disruption between the two. This led to the trade rivalry between the Muslim traders from Oman and European Christian traders over the Indian Ocean Trade and trade settlements in Oman.
Moroccan Conflict with the Songhai Empire
The primary reason for the Moroccan invasion of Songhai was to seize control and revive the trans-Saharan trade in salt and gold. The battle between Moroccans and Songhai was known as the Battle of Tondibi, resulting in Moroccan conquering Songhai.
Anglo-Dutch Wars
By the mid-17th century, the Dutch emerged as the dominant European maritime power, and England wanted to claim this title. Thus, the two maritime powers clashed with one another in a series of four wars. The Dutch were weakened by the fourth war, losing their North American and South African colonies to the English. In the end, the English became the new dominant European maritime power.
