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Summary of European Maritime Expansion: Mercantilism

History

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European Maritime Expansion: Mercantilism

Introduction

Relevance of the Theme

European Maritime Expansion and Mercantilism represent two fundamental pillars of the development of modern society. The intrepid search for new trade routes by Europeans, combined with the competition for trade monopolies, paved the way for a new era of discoveries and globalized trade. The direct influence of these events can still be felt today, affecting politics, economy, and culture worldwide.

Contextualization

This is a critical module within the study of history, fitting into the section dedicated to the formation of the modern world. The concepts addressed here provide a deep understanding of the driving forces behind Europe's expansion in the post-medieval period. The analysis of maritime voyages, the exploration of new lands, and the implementation of the mercantilist system are crucial elements to comprehend the roots of the global capitalist system.

Theoretical Development

Components

  • Mercantilism: An economic system that flourished between the 16th and the end of the 18th century, whose main objective was to amass wealth for the State. In this system, wealth was measured by the amount of precious metals (gold and silver) under its possession. Exportation was encouraged, and importation was discouraged, generating favorable trade balances. The mercantilist system was the seed of modern capitalism.

    • The Role of the State: In mercantilism, the State played a fundamental role in controlling the economy. It was up to the sovereign, through measures such as establishing monopolies, to regulate trade and production. Furthermore, totalitarian States emerged from the idea of a Strong State, characteristic of Mercantilism.
  • Maritime Expansion: A movement that led Europeans to explore and establish colonies in previously unknown lands. Carried out by countries like Portugal, Spain, England, and France, it had an impact on various areas, including the economy, politics, and culture. The feasibility of these voyages was made possible by the development of new nautical technologies and the search for more profitable trade routes.

  • Political and Economic Consequences: Maritime Expansion and Mercantilism initiated a series of pronounced changes, both political and economic. Highlights include:

    • The Strengthening of the State: With the influx of wealth from colonial trade, the State began to play a prominent role in the economy, defense, and administration of the colonies. Thus, the Modern State was born.
    • The Resurgence of Cities: With the growth of trade, cities resurged, becoming centers of economic activities and urbanization. Social and labor relations were restructured, initiating what we know as the urban-industrial society.
    • The Birth of Capitalism: Mercantilism gave rise to the capitalist system, with the establishment of commercial relations based on profit and wealth accumulation.

Key Terms

  • Colonies: Territories controlled and exploited by a nation, located outside its borders. During maritime expansion, European nations established colonies in various parts of the world, aiming to extract resources and establish trade routes.

  • Trade Balance: The difference between the value of exports and the value of imports of a nation in a given period. In mercantilism, a positive trade balance, that is, with more exports than imports, was considered a sign of wealth.

  • Modern State: A form of political organization that emerged in the early Modern Age and is characterized by the centralization of power in the hands of the State, which starts to control various aspects of social and economic life.

Examples and Cases

  • The Case of Portugal: Portugal was one of the pioneers in maritime expansion. Its search for more direct routes to the East resulted in the discovery of the path to the Indies by Vasco da Gama in 1498. This achievement brought great profits to the Portuguese crown, boosting the country's economy.

  • The Case of the Treaty of Tordesillas: An example of the political consequences of maritime expansion is the Treaty of Tordesillas (1494), which divided the lands to be discovered between Spain and Portugal. Through this treaty, Portugal established its exploration routes to the Indies and Brazil.

  • The Wealth of Spain: Spain became, during the period of maritime expansion, one of the greatest powers in the world. The enormous amount of gold and silver brought from the Americas brought great wealth to the Spanish crown. However, this wealth was not well managed, leading to a period of economic decline.

Detailed Summary

Key Points

  • The Need to Find New Routes: Europeans initiated maritime expansion in the context of intense competition for the control of trade routes. The goal was to bypass the Ottoman Empire, which had a monopoly on land routes to the East, and establish more profitable trade routes.

  • The Importance of Mercantilism: The mercantilist system was the economic basis of maritime expansion. The fundamental principle was the accumulation of gold and silver through trade. This led to an intensive export policy and restricted importation.

  • The Rise of the Modern State: Maritime expansion and mercantilism were crucial factors in the development of the Modern State. With the need to finance voyages, States had to take on a more active role in the economy, administration, and defense of their colonies.

  • The Development of Capitalism: Mercantilism was the embryo of modern capitalism. The commercial practices and economic concepts that emerged during this period – such as capital investment, profit-seeking, and competition – were fundamental to the formation of the capitalist system.

Conclusions

  • The Imminence of Competition: The competition among European nations for the control of trade routes and colonies was a determining factor in maritime expansion. This led to territorial conflicts, wars, and international tensions.

  • Imperialism: Maritime expansion also marked the beginning of the imperialism process, with European nations seeking to control and dominate territories and populations in different parts of the world.

  • Global Impact: The consequences of maritime expansion and mercantilism are still felt today, worldwide, in economic systems, international relations, and the global distribution of power.

Exercises

  1. Explain the relationship between the need to find new routes, the mercantilist system, and the development of the Modern State during maritime expansion.

  2. Discuss the importance of the Treaty of Tordesillas (1494) for maritime expansion and the beginning of imperialism.

  3. Identify and discuss two consequences of maritime expansion and mercantilism that are still felt today.

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