The Mercantilist Economy

FOUNDATIONS OF THE ATLANTIC WORLD HIST 1301 | History The Mercantilist Economy The Age of Exploration had a major role in the world's historical transformation that occurred in the late 15th and early 16th centuries. During this time, European nations undertook lengthy naval expeditions that resulted in the discovery and settlement of new territories. Portugal and Spain led the way in this fervour of discovery. These two Iberian nations split up the recently discovered areas outside of Europe in 1494 under the terms of the Treaty of Tordesillas, which was approved by the Pope. Portugal concentrated on Brazil, Asia, and Africa, whereas Spain concentrated on the huge, unexplored Americas. Other European countries were influenced to follow Spain and Portugal's lead due to their prosperous colonisation in the Americas and, more significantly, their remarkable success in doing so. The English, French, and Dutch soon crossed the Atlantic with the audacious goal of founding their own colonies, which they intended to exploit for resources in order to increase their political and economic power and establish a foothold in the New World. They did this after observing the wealth and power amassed by their rivals in Iberia. The early conquests of Spain were enormous. Large empires in the New World were subjugated by the Spanish conquistadors, who were motivated by a powerful combination of personal ambition, royal backing, and religious fervour. The remarkable triumph of Spanish military expeditions was demonstrated by Hernán Cortés's conquest of the Aztec Empire in 1521 and Francisco Pizarro's destruction of the Incan Empire in 1533. These victories were not only very lucrative but also highly territorial. Wealth from these areas, especially gold and silver, was taken out and brought into Spain, which changed its economy drastically and made it a world powerhouse. The Spanish were able to further increase their economic profits by using indigenous labour for mining and agricultural enterprises when the encomienda system was established. Wide-ranging repercussions from this money inflow included inflation and the transformation of European economies. Portugal gained a lot of ground in Brazil while being less widespread throughout the Americas. Exploiting the rich soil and pleasant climate, the Portuguese built sugar plantations along the northeastern coast. The Portuguese established a very successful sugar business thanks to the entrance of African slaves, who were resistant to tropical illnesses than the native people. The Portuguese economy benefited greatly from the income these sugar plantations produced, which also solidified their dominance in the Atlantic region. Portugal's economic and political might were further enhanced by its strategically located trading stations in Asia and Africa and its hegemony over the profitable spice trade. Other European nations took note of Spain's and Portugal's astounding accomplishment. After seeing the riches and power that their Iberian counterparts had amassed, the English, French, and Dutch became eager to build their own colonial empires. These countries were driven by a mix of religious, nationalistic, and economic motivations. A spiritual component was given to the colonial endeavours by the Reformation and the accompanying religious battles in Europe, when Protestant England and the Netherlands attempted to balance out Catholic Spain and Portugal. Among the first to oppose the supremacy of the Spanish and Portuguese were the English. English attempts were intermittent and had varying degrees of effectiveness at first. The "Lost Colony" never quite made it out of the misfortune of Sir Walter Raleigh's failed attempts to create the Roanoke Colony in the late 16th century. On the other hand, the founding of Jamestown in 1607 signalled the start of an ongoing English presence in the Americas. Supported by the joint-stock Virginia Company, the Virginia Colony served as a model for other English colonial endeavours. John Rolfe introduced tobacco farming, which turned out to be extremely successful and guaranteed the colony's economic survival. This achievement encouraged more English colonisation efforts, which resulted in the founding of several colonies along North America's eastern shore, each of which had distinct political and economic systems. The French founded outposts in Canada and the Mississippi Valley in order to take advantage of North America's abundant fisheries and fur trade, as well as to locate a northwest way to Asia. In 1608, Samuel de Champlain established Quebec, which later served as New France's capital. The colonisation strategy used by the French was different from that of the English and Spanish. They forged strong bonds and participated in vast alliances and trading networks with Native American tribes. The French colonial economy was based mostly on the fur trade, especially on beaver pelts. In order to prepare for further exploration, French explorers like Jacques Marquette and Louis Jolliet mapped the Mississippi River during their interior exploration of the continent. The Dutch, on the other hand, concentrated on building an empire in trade. Dutch colonial operations were greatly aided by the Dutch East India Company and the Dutch West India Company. The Dutch founded New Amsterdam on the island of Manhattan at the beginning of the 17th century, and it quickly developed into a thriving centre of trade and business. New Amsterdam's advantageous position made it easier to control the Hudson River and get access to the interior fur trade. In order to concentrate on the production and commerce of sugar, the Dutch also founded colonies in the Caribbean and South America. The Dutch had a relatively brief stay in North America—New Amsterdam was taken over by the English in 1664 and renamed New York—but their contributions to trade and commerce had a long-lasting effect. In addition to being an economic competition, the battle for colonies in the New World among European powers was also a struggle for dominance and influence on a worldwide scale. With repeated battles and fluctuating alliances, the colonies became become arenas for European rivalry. The European powers' economy were driven by the resources they took from the colonies—gold, silver, sugar, tobacco, and furs—which allowed them to fund wars and amplify their dominance. Trade networks that connected the economies of Europe, Africa, and the Americas were established as a result of the mercantilist policies of the era, which mandated that colonies exist for the profit of the home nation. The history of the world was significantly and permanently impacted by the colonisation of the Americas. It resulted in the Columbian Trade, a movement that changed communities on both sides of the Atlantic by transferring products, concepts, and cultural practices. New crop introductions like maize and potatoes had a big influence on agriculture in Europe and throughout the world. On the other hand, the native American people of the Americas suffered greatly as a result of European cattle and illnesses. The need for labour on plantations in the New World propelled the transatlantic slave trade, which had disastrous social and human effects and shaped the economics and demographics of the Americas and Africa for centuries. In conclusion, other European countries were encouraged to pursue their colonial aspirations by Spain and Portugal's success in the Americas, which established a precedent. These endeavours brought in the growth of the Atlantic world and the connecting of continents via trade, warfare, and cultural interchange, reshaping the world order with their wealth and power. The European powers' exploration, conquest, and transformation of the New World was motivated by their desire for dominance and wealth, leaving behind a complicated legacy that includes both great achievements and tragic events.