European economic expansion

Definition

European economic expansion refers to the significant growth in trade, commerce, and industrial activities across Europe from the late 16th century through the 18th century. This period was marked by increased overseas exploration, colonization, and the establishment of trade networks that connected Europe to the Americas, Africa, and Asia. The expansion led to the rise of powerful nation-states and transformed economies through mercantilism and the beginnings of capitalism.

5 Must Know Facts For Your Next Test

1. European economic expansion was driven by advancements in navigation and shipbuilding technologies, allowing for longer sea voyages and more extensive trade routes.
2. The establishment of joint-stock companies, like the British East India Company, played a crucial role in facilitating trade and investment in overseas ventures.
3. This period saw the rise of triangular trade routes connecting Europe, Africa, and the Americas, leading to the exchange of goods such as sugar, tobacco, and enslaved people.
4. The influx of wealth from colonies contributed to social changes in Europe, including the rise of a merchant class and increased consumer culture.
5. Economic expansion also spurred competition among European powers, leading to conflicts over trade rights, territory, and influence around the globe.

Review Questions

• How did advancements in navigation technology contribute to European economic expansion?
  • Advancements in navigation technology, such as the use of compasses, astrolabes, and improved cartography, greatly enhanced European seafaring capabilities. These innovations allowed explorers to undertake longer voyages with greater accuracy and safety. As a result, Europeans were able to establish new trade routes and connect with distant lands, leading to increased commerce and the exchange of goods that fueled economic growth.
• Discuss the impact of mercantilism on European nation-states during the era of economic expansion.
  • Mercantilism had a profound impact on European nation-states by promoting policies aimed at accumulating wealth through trade. Governments sought to enhance their power by establishing colonies that would provide raw materials and markets for finished goods. This economic theory not only shaped national policies but also fostered rivalry among states as they competed for dominance in global trade. The focus on state-controlled economies laid the groundwork for future economic systems.
• Evaluate how European economic expansion affected global trade patterns and indigenous populations during the 18th century.
  • European economic expansion fundamentally altered global trade patterns by establishing a network that linked Europe with Africa, Asia, and the Americas. This shift facilitated the exchange of goods but also led to exploitation and disruption of indigenous populations. Colonization often resulted in the displacement of native peoples and significant social changes due to European imposition of new systems of governance and economy. The consequences were profound, leading to cultural exchanges but also conflict and oppression as European powers sought to dominate global markets.

Related terms

Mercantilism: An economic theory that emphasizes the importance of accumulating wealth through trade, establishing colonies, and maintaining a favorable balance of trade to increase a nation's power.

Colonialism: The practice of acquiring control over foreign territories, often involving the settlement of people from the colonizing nation and exploitation of resources for economic gain.

Capitalism: An economic system characterized by private ownership of the means of production, free markets, and competition, which began to take shape during this period of expansion.