Modern World History

Unit 3: The Age of Exploration.

Lesson 8: The Atlantic World (Part 4).
Colonial Latin America. Columbian Exchange.
Mercantilism
Angela Trubceac, Ph.D.
Overview:
● This day in Modern World History - September 28
● Proverb of the day: Latin-American wisdom

● Key concepts
● The Columbian Exchange
● The Colonial Latin America Society
● The Colonial Latin America Politics and Economy
● Global trade
● Mercantilism: Advantages & Disadvantages

● HW for Monday, September 28.

This day in Modern World History

● 1066 - William the Conqueror invaded England

● 1542 - Portuguese explorer Juan Rodriguez Cabrillo arrived in [resent-day
San Diego
● 1781- American forces (9000 people) in The Revolutionary War, backed by
FRench fleet (7000 people) began the siege of Yorktown
● 1928 - Alexander Fleming discovered penicillin - the 1st effective antibiotic
● 1887 - Yellow River (Huang He) floods China, killing approximately 2 mln
people - one of the deadliest disaster in human history.
Proverb of the day:
Society Culture

Colonial Latin America

Politics Economy
 Key concepts:
● Mercantilism - belief in the benefits of profitable trading; commercialism;an
economic policy that is designed to maximize the exports and minimize the
imports for an economy. It promotes imperialism, tariffs and subsidies on traded
goods to achieve that goal.
● Capitalism - an economic and political system in which a country's trade and
industry are controlled by private owners for profit, rather than by the state.
Capitalism is an economic system that works around the concept of wealth creation in
the pursuit of economic growth for the nation while mercantilism focuses on wealth
accumulation through extraction of wealth which they believe is measured by the
amount of gold bullions that the nation has in its possession
● Imperialism - a policy or ideology of extending the rule or authority of a country
over other countries and people, often by military force or by gaining political and
economic control.
While capitalism is based on voluntary exchange that benefits all parties involved,
imperialism is based on exploitation and the exercise of political power, generally
backed by a military force.
Key people: ● Sir Thomas Mun (1571–1641), English merchant -
major creator of the mercantile system (seen by Adam
Smith - Scottish economist, philosopher, author, moral
philosopher, and a pioneer of political economy)
● Jean-Baptiste Colbert (1619 –1683), French
statesman, First Minister of State from 1661 until his
death in 1683 under the rule of King Louis XIV (le Roi
Soleil). His lasting impact on the organisation of the
country's politics and markets, known as Colbertism, a
doctrine often characterised as a variant of mercantilism.
 Guiding Questions for
discussion:

Guiding questions:
● What factors and motivations led to Spanish and Portuguese expansion across
the Atlantic Ocean? In what ways did the indigenous peoples resist and adapt
to the European conquest of their territories?
● What kinds of racial and social hierarchies existed in colonial Spanish and
Portuguese America? How did they change, if at all, over time?
● What was the law of 1542 about?
● What were the varied roles of the Catholic Church in colonial Latin America?
● What were the economic strategies of the Spaniards and Portuguese in the
different regions of Latin America? What kind of trade did empires have with
their colonies (import-export)?
● What is Mercantilism?
● What was the Navigation Act about?
● What were the Bourbon reforms about?
Compare these 2 maps:
- How are they different?
- Why are they different?
Any connection between Age of Exploration, Atlantic Slave Trade,
Mercantilism and Global Trade?
 The Columbian Exchange
● Frightening Foods
Activity: Major items of exchange
● How do modern culinary and cuisines benefit from Columbian exchange?
● The geography of food
● When 3 worlds meet: Harmful and Beneficial aspects of Columbian Exchange
 Global (Transoceanic) Trade = Commercial/ Economic Revolution
● The rise of Capitalism
● Joint-Stock Companies (early modern era corporations)
● Mercantilism: Gathering/ acquiring Gold by 2 means:
- exploiting colonies vs.
- establishing a favorable balance of trade with a rival country

Page 574 - a concept map of mercantilism

● Balance of Trade:
- Pozitive/ Favorable Trade Balance (Import < Export)
- Negative/ Trade balance (Trade Deficit) (Import > Export)
 Mercantilism: Pros and Cons
● Created a sure market for English
colonial traders and their goods (due
to the Navigation Act 1551, 1560)
● Booming shipbuilding industry
● Development of merchants class =
Bourgeoisie
● Encouraged the complete
development of all natural resources
● Led to trade surplus (positive trade
balance)
● Reduces unemployment rate
● Cultural exchange is encouraged
● Traders and merchants became the
most powerful class in society
● Bourgeoisie came to control the
politics and government of the nations
(not landlords)
● Colonists came to resent the
Navigation Act
● Some colonists practiced smuggling to
make money
● It encourages trade deficit (Import >
Export) for some nations
● Creates a high level of resentment
● Creates a wide gap between mother
nation and colonies
● A risk of local raw materials &
resources running out
● The system is ultimately quite
inefficient (out of practice)
 Features of Commercial/ Economic Revolution

- a surge in overseas trade,

- the appearance of the chartered company,
- acceptance of the principles of mercantilism,
- the creation of a money economy,
- increased economic specialization,
- the establishment of such new institutions as the state bank, the bourse,
and the futures market.
- helped set the stage for the Industrial Revolution.
Page 575 - Critical Thinking - Answer questions.
 Homework for Tuesday, September, 29:

● Review of the Unit 3 “Age of Exploration”

- Read your notes
- Revise Concepts
- Famous people: Explorers, political leaders
- Causes and effects of events and processes

● Finish your presentation for the Unit Final Assignment. Send it to your teacher.