Barter economy Pre: 1500
The exchange of goods or services for other goods or services.
Examples of barter economy
All over the world Barter economies were used and are still used today. Early civilizations and those afterwards had a characteristic called Job specialization. This means that people specialized in one or two specific duties, and then traded with others for goods, or services depending on what they could not produce/do on their own.
Silk Road Pre:1500
A 4,000 mile Trade route that stretched from China to the Fertile Crescent in the Middle East.
What was traded along the Silk Road Pre:1500
Furs from Central Asia
Muslin from India
Glass from Rome
Silk and Porcelain from China
Also brought many people in contact with each other for the first time and caused the exchange of language and culture.
Capitalism Post: 1500
The control of a country's means of production by private owners/businesses for profit.
Capitalism developed in Europe in the 1500's. In order to gain a profit capitalists adopted bookkeeping methods from the Arabs to show profits, and losses in their ventures. Joint stock allowed people to invest in overseas ventures which was a great risk because if the company lost their money, so would those individuals.
More Early Capitalism
Capitalism bypassed the guilds and separated labor from capital for the first time by using the "putting-out" systems also known as "cottage industry".
The process in which a country moves from having an agrarian based economy (raw materials), to one centered around the manufacturing of goods and services. Also pushes people to look to technological innovation to solve problems.
Capitalist Country in Asia
Japan is a major capitalist country managed to improve a war torn economy, and turn it into an important player in the global economy by producing and selling electronics, cars etc.
Industrialization in Latin America
Latin America didn't actually industrialize as a result of the Industrial revolution in Europe. However, after gaining independence from their various colonial masters, Latin America did become a huge exporter of raw materials. They imported textiles, machinery, tools, weapons, and luxury goods. They did modernize, and many cities were compared to those of Europe ex. Buenos Aires to Paris. However, most of the population lived in rural areas, and as Latin America wasn't producing finished goods they were not an Industrialized society. ex. Very few factories.
Industrialization in India
Unlike Latin America, India did industrialize. Thousands of people worked in factories, in new urban areas, that produced goods (and pollution). India mainly produced textiles. After India was colonized by the British, they used India as a source of raw materials, and a free market for the goods they produced.
Effects of Industrialization
The spread of industrialization was also marked by the spread of disease and death due to both living and working conditions in the factories and cities. The cities were over crowded, and the factory workers often suffered long hours, with little pay.
Encomienda System Post: 1500
The encomienda system gave the spanish conquistadors the right to demand labor or tribute rom Native Americans.
Practice of Encomienda
Under this system, Native Americans were forced to work under brutal conditions. Any resistance was repaid through violence and often enough death. The encomienda system was used on plantations and in mines (silver in Potosí).
Extra on Economies
Darius I of Persia was one of the first to begin using coins which was the beginning of the money economy.
The Triangle trade developed much later than trade by the silk road. The Triangle trade was aptly named because it created a sort of triangular root, between the 3 ports/countries that were involved in the trading process.
Who was involved in Triangle Trade?
After the 1400's, Europeans traded beads, pans, and other small objects, for slaves from West Africa. From there, the slaves were taken to Latin America, North America. From the America's, the Europeans procured raw materials such as silver, sugar, cotton, tobacco, and much more. They took these goods back to Europe in order to manufacture goods they would then sell back to Latin America. This was the completed triangle trade, It went around from West Africa, to Latin America, and back to Europe.
Landlord system of China
From 100 B.C. to 8 C.E., Peasants were made to work on land owned by wealthy landowners in order to pay off debts. State authorities demanded that peasants pay taxes, a months labor every year on public works projects, and two years military service by young men.
Sugar Production in Latin America
Slaves were made to work on huge plantations that produced sugar as a cash crop for European imperialists. Sugar, was the man export of Latin America after 1400. It was a dangerous process and very labor intensive. Sugar was produced in Brazil, and several Caribbean islands. The slaves after obtaining the raw materials, they processed the sugar which was then sent off to Europe.
The Neolithic revolution was the change from nomadic life to settled farming in 10,000 BC.
Neolithic Revolution cont.
At the start of civilization, nomads settled into small communities and were able to domesticate plants and animals in order to use them for food and resources. They began to farm, producing their own food instead of staying on the move because of the necessity to hunt. This was the beginning of agricultural production.