Chapter 14.5: Toward a World Economy (2)

  1. The Growth of Commercial Capitalism
    European Trade
    • a.      European trade around three areas: Mediterranean, Low Countries and Baltic Region, and C. Europe
    •                                                               i.      Overseas trade expandsà Atlantic seaboard linked them and played important role, making the whole of Europe into a more integrated market that was all the more vulnerable to price shifts
    • 1.      Cheaper and faster ships led Dutch to monopolize European and world trade
  2. The Growth of Commercial Capitalism
    Commercial expansion
    • a.      Commercial expansion of 16-17th made easier by new commercial organizations, especially the joint-stock company
    •                                                               i.      Individuals bought shares in a company and received dividends on investment while board of directions ran the company and made important business decisions
  3. The Growth of Commercial Capitalism
    a.      Profits in shipbuilding and in mining and metallurgy, where technological innovations, like pumps and new methods of extracting metals from ores, were successful
  4. The Growth of Commercial Capitalism
    Profits in Mining
    •                                                               i.      Mining tied to family banking firms
    • 1.      In exchange for arranging large loans to Charles V, Jacob Fugger given a monopoly over silver, copper, and mercury mines in the Habsburg possessions of c. Europe that produced profits in excess of 50% yearly
    • a.      Precarious relationships between governments and entreprenaurs
    •                                                                                                                                       i.      House of Fugger= bankrupt when Habsburg defaulted on their loans
  5. The Growth of Commercial Capitalism
    17th century traditional family banking firms
    • 1.      17th c: traditional family banking firms no longer able to supply services needed for expanding commercial capitalism
    • a.      Amsterdam created Bank of Amsterdam in 1609 as both a deposit and transfer institution and the Amsterdam Bourse, or Exchange, where trading of stocks replaced exchange of goods
  6. The Growth of Commercial Capitalism
    First half of 17th
    First half of 17th Amsterdam exchange was hub of European business world, just as Amsterdam itself replaced Antwerp as greatest commercial and banking center of Europe
  7. The Growth of Commercial Capitalism
    Dependence on agricultural System
    •                                                               i.      80% worked land
    •                                                             ii.      Peasants free of serfdom, but still owed feudal dues to nobility
    •                                                           iii.      Despite expanding markets and rising prices, peasants saw little/ no improvement and faced increased rents and fees and higher taxes imposed by state
    • 1.      Eastern Europe: position worsened as they were tied to land in new serfdom enforced by powerful landowners
Card Set
Chapter 14.5: Toward a World Economy (2)
Europe in the World: New Enconters, 1500-1800