Ap Euro Essay Outline

Topics: Absolute monarchy, 18th century, Slavery Pages: 6 (1739 words) Published: March 3, 2013
1) The 18th century is known as the era of the Global Economy. Describe the world economy in the first half of the 18th century and assess the effects of the economic, political, and social trends.

I. Intro

II. Economically, the old regime was marked by a scarcity of food, agrarian economy, slow transport, little iron production, unsophisticated finances, and sometimes commercial overseas empire. (And mercantilism)

Mercantilism and the Atlantic Economy
A. European maritime exapansion in the 18th century
a. raw material
b. Gold and silver extracted from the rich minds in Peru and MesoAmeic and Spanish Empire 2. World trade became fundamental to the European economy a. Sugar became the most important commodity produced in the Atlandtic trade; tobacco, cotton and indigo b. Spain and Portugal revitalized their empires

B. Commercial Revolution (A shift from the Mediterranean to the Atlantic) i. causes
ii. The key development in the period was the growth in population. This significant population expansion was very important for economic productivity in an age in which manpower was still far more important than labor saving technology. The expansion of Europe’s population also provided for additional consumers, which meant that there was greater incentive to bring more food to market. a. population growth thus more consumers existed

b. Price revolution: long slow upward trend in prices (increased food prices, increased volume of money, and the influx of gold and silver c. increased prices meant increase in supply of goods

d. rise in capitalism (laissez faire :entrepreneurs invested money in their own business ventures (middle class bourgeoisie led the way) iii. Banking
a. Fuggers in Germany and the Medici in Italy
iv. The Hanseatic League evolved from within the German states in the Middle Ages that eventually controlled trade in much of northern Europe well into the 16th century v. Chartered companies: state provided monopolies in certain areas (British East India Company and the Dutch East India Company) vi. Join-stock companies: investors pooled resources for a common purpose vii. stock markets emerged (bourse in Antwerp)

a. Investors financed a company by purchasing shares of stock. viii. First Enclosure movement in England: Wealthy landowners enclosed their lands to improve sheep herding and thus the supply of wool for the production of textiles ix. New consumer goods: sugar, rice, and tea (Sugar production resulted in an enormous slave trade in the Atlantic) 1. European maritime expansion in the 18th century

i. world trade became fundamental to the European economy ii. sugar became the most important commodity produced in the Atlantic trade; tobacco, cotton, and indigo were also important iii. the slave trade was enormous

iv. Netherlands, great Britain, and France benefited the most C. Strong Economies: Mercantilism and capitalism and the Atlantic Economy 2. Characteristics of mercantilism – Jean Baptiste Colbert installed mercantilism at the expense of Dutch overseas commerce, Louis XIV, France Brought about by absolutist system of government in which the economy was under control of government i. Main goal: economic self-sufficiency

ii. A country or empire sought to create a favorable balance of trade by exporting more than it imported iii. bullionism: countries sought to build up large reserves of gold and silver and prevent the flow of these precious metals out of their country i. example: Great Britain became the world’s leading maritime power in the 18th century ii. promotes national prosperity

iii. Bubble economy and inflation resulting from Mercantilism 3. Capitalism
i. laissez faire: entrepreneurs invested money in their own businesses or other business ventures ii. middle class (bourgeoisie) led the way
iii. essentially an economic system based on...
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