Document two shows that although Spain was originally in power due to their large quantities of silver, they were soon trading that silver for other countries' goods. This led to other countries obtaining large amounts of silver, reducing the impact of Spain and it's silver. With the author of this document being a Spanish scholar, he notes that Spain's economy is struggling and he knows this because he resides in Spain and has experienced first hand how silver has affected the local economy. Document three also talks about how people are losing money from the arrival of silver. The Chinese government began to require all taxes be paid in silver.
In the Ming empire, the changes that they went through economically and socially were very dependent on the silver trade. As silver became a global staple for trade, the want and feeling of luxury that silver brought enabled everyone to be included in the trade(Doc 1). In China, people could use silver extravagantly or in common expenses. This increased the economic base
The increased flow of silver during the mid-16th century to the early 18th century caused social and economic effects in all regions connected with the trade by increasing the integration of Europeans in the globalization of world trade, while creating greater economic opportunities and causing growing social divisions within China. It would help to have a document from a Japanese merchant, to see if the effects of the silver trade affected the Japanese economy as much as it did the Chinese and Spanish. It would be nice to see a document from a Chinese farmer/peasant to see if the increased flow of silver affected their lifestyles as Document 3 or 5 suggests. The economic impact of the global flow of silver in Spain during this time period
Lucy Wang Snavely AP World History Period 1 21 March 2016 Silver Article Summary In Born with a “Silver Spoon”: The Origin of World Trade in 1571, Flynn and Giráldez talk about global trade, silver, inflation, mining, etc. This article is controversial and contains statements that are different than the popular opinions that people often have. Silver was said to be the “product most responsible for the birth of world trade” and was considered valuable/profitable to various countries. China was the main consumer of silver which led all the silver mines in the world to sell silver to China. Although China was a pivotal country and played an important role in the birth of world trade, it was neglected due to eurocentrism.
These newly discovered resources caused Spanish trade and commerce to flourish. Silver was the main source of wealth in the Spanish colonies in the Americas. However while this was nice for the Europeans initially, the surplus of silver flooding European markets, as well as some Asian markets caused inflation where the value of silver decreased while the prices for products increased. The colonization of the Americas also led to the Columbian exchange.While this had a profitable impact on the Spanish, it had a detrimental impact on the Natives. The high demand for their products in Europe caused the Spanish to establish the ‘Encomienda’ system, a new labour policy where Spaniards were given legal rights to American lands and possession of
Initially, European countries were looking for a water passage to China so they would be able to trade for their goods. Spain, who lead the charge, landed in Central and South America, captured gold and silver. From this the Spain were able to grow their army and hence, their political power. Next in line were the France who landed in North America and discovered the land to be ripe with animal pelts which brought great wealth to the French. The Dutch had found the same success as the France.
During the age of exploration, Portuguese sailor Vasco da Gama was the first to sail from Europe to India; which opened up a new world of trade for Europe and Asia. As the discoveries of his voyage caused many European nations a desire of luxury goods from Asia such as spices, silks, jewels, and textiles. This new desire of trade eventually encouraged more nations to find trading routes to Asia, ultimately reaching China and Japan where the Europeans acquired an even stronger desire for trade. However, the Chinese were very wary of foreign trade and only accepted silver as means of exchange; which eventually created a massive global flow of silver for European nations to be able to trade with China, where Japan and the Americas were the main
This is because the Ming court purchased all the foreign goods imported on the tribute missions, and they often paid prices highly inflated over the market price. This advantage was exploited by many of China’s tributary states, as demand to Chinese goods was high and the Chinese gifts traded from tribute were sold for very high
He gave an example that connected the monopolized banking system in Germany to the development of imperialism. As the advancement of industries, the German banks gradually played a significant role in finance and eventually became so powerful that they could manipulate most of the industrial cartels in Germany. As the severe competition increased, these cartels made less profits and suffered more the financial burdens. Consequently, the banks accompanied by the cartels were eager to export their capital to foreign lands. With the help of the imperial governments, the cartels strongly vied for foreign markets to expand their capitalist markets in the world.
Corruption is also a significant risk for foreign companies in Mexico and it leads to investment losses from other countries which reduces national income and development of the private sector. Mexican cartel leaders are known for bribing high level politicians along with Mexican and American banks, which makes it more difficult in winning the drug war for the government. Winning the drug war against the cartels would mean an end to a higher annual percentage growth rate of GDP and a large number of employments. The Harvard paper states that if the Mexican government fought the drug cartels the economic losses would be 12.3% of the total Mexican GDP