Globally, what happened to economic systems after 1450?
After 1450, the global economic systems went through significant changes due to various factors and events. Here are some key developments during this period:
1. Age of Exploration and Colonization: The period following 1450 witnessed an era of extensive exploration and colonization by European powers. This led to the establishment of new trade routes, such as the discovery of the Americas by Christopher Columbus in 1492. It resulted in the integration of global economies and the expansion of trade networks.
2. Emergence of Mercantilism: European powers started to adopt mercantilist economic policies, which aimed to accumulate wealth through a favorable balance of trade. Mercantilist nations prioritized exports over imports, enforced tariffs and quotas, and established colonies as sources of raw materials and captive markets. This economic doctrine dominated European economic thinking until the advent of capitalism.
3. Rise of Capitalism: The late 15th century saw the early developments of capitalism, which gradually replaced feudalism in several European countries. Capitalism emphasized private ownership, profit motive, free markets, and the accumulation of capital. It facilitated the growth of trade, manufacturing, and commerce, leading to increased productivity and economic expansion.
4. Commercial Revolution: The period from the late 15th century to the 18th century witnessed a Commercial Revolution characterized by the growth of global trade, commercial capitalism, and the establishment of powerful trading companies like the British East India Company and the Dutch East India Company. This revolution significantly increased global economic integration and generated wealth for European nations.
5. Atlantic Slave Trade: The Atlantic slave trade became a significant component of the global economy after 1450, fueled by the expansion of European colonies in the Americas. Millions of African slaves were forcibly transported to the Americas to work on plantations, mines, and other labor-intensive industries. This transatlantic trade shaped economic systems, labor markets, and social structures in the Americas and had broader economic implications for Europe and Africa.
6. Transcontinental Trade: With the establishment of new trade routes, such as the Silk Road and the sea routes connecting Europe, Africa, Asia, and the Americas, global trade expanded exponentially. The exchange of goods, ideas, and technologies across continents revolutionized economic systems, leading to the growth of cities, banking, and capital markets.
7. Development of Global Capital Markets: The growth of trade and capitalism led to the emergence of global capital markets. Financial instruments like bills of exchange, shares, bonds, and joint-stock companies enabled individuals and institutions to invest in various ventures, promoting economic expansion and innovation.
Overall, these developments reshaped economic systems, expanded global trade, accelerated industrialization, and set the stage for the economic transformations that followed in later centuries.