Which of the following correctly analyzes the ways in which new systems of trade impacted the global economy?
1. West African trading empires gained power as new resources became available.
2. New economic ideas like mercantilism and capitalism enriched European economies. *
3. Chinese dynasties in Asia lost wealth from global trade.
4. Silver mines contributed to the wealth of South American economies.
2. New economic ideas like mercantilism and capitalism enriched European economies.
The correct statement is:
2. New economic ideas like mercantilism and capitalism enriched European economies.
This statement correctly analyzes the impact of new systems of trade on the global economy. The introduction of mercantilism and capitalism in Europe led to the generation of wealth and economic growth in European countries. These economic ideologies emphasized the accumulation of wealth through trade and encouraged the establishment of colonies and the acquisition of resources from around the world.
The correct answer is option 2: New economic ideas like mercantilism and capitalism enriched European economies.
To arrive at this answer, you can analyze each of the options and eliminate the ones that are not correct.
Option 1 states that West African trading empires gained power as new resources became available. However, in reality, West African trading empires faced several challenges during the era of new trade systems, such as the transatlantic slave trade and European colonization. So, option 1 is not the correct answer.
Option 3 suggests that Chinese dynasties in Asia lost wealth from global trade. While it is true that Chinese dynasties faced challenges from European colonial powers, the overall impact of new trade systems on the Chinese economy was more complex. In certain periods, they benefited from the trade in luxury goods, such as porcelain and silk. Therefore, option 3 is not the correct answer.
Option 4 states that silver mines contributed to the wealth of South American economies. This is indeed true. The discovery of vast silver mines, particularly in present-day Mexico and Peru, resulted in increased production and circulation of silver in the global economy. This, in turn, contributed to the wealth of South American economies. However, this option does not address the impact of new economic ideas, which is the main theme of the question. Hence, option 4 is not the correct answer.
Finally, option 2 suggests that new economic ideas like mercantilism and capitalism enriched European economies. This option correctly highlights the influence of these economic ideologies on European nations during the era of new trade systems. Mercantilism, characterized by protectionist policies and colonial expansion, helped European powers accumulate wealth and establish trade networks. Capitalism, with its emphasis on private ownership and free markets, facilitated economic growth and development. Therefore, option 2 is the correct answer that analyzes the ways in which new systems of trade impacted the global economy.