Spain, Portugal, and the creation of a global economy | World History | Khan Academy

Recent questions

• What is global trade?

  Global trade refers to the exchange of goods and services across international borders. It encompasses a wide range of activities, including importing and exporting products, establishing trade agreements, and navigating tariffs and regulations. The concept of global trade has evolved over centuries, with historical examples illustrating its significance in connecting different regions and cultures. For instance, the early trade routes established by explorers and merchants facilitated the exchange of valuable commodities, such as spices, textiles, and precious metals. Today, global trade plays a crucial role in the world economy, influencing everything from local markets to international relations.

• How does trade impact economies?

  Trade significantly impacts economies by fostering growth, creating jobs, and enhancing consumer choices. When countries engage in trade, they can specialize in producing goods and services that they can create most efficiently, leading to increased productivity. This specialization often results in lower prices and a greater variety of products available to consumers. Additionally, trade can stimulate innovation as businesses seek to compete in the global market. However, it can also lead to challenges, such as job displacement in certain sectors and economic dependency on foreign markets. Overall, the effects of trade on economies are complex and multifaceted, shaping both local and global economic landscapes.

• What are trading posts?

  Trading posts are locations established for the purpose of facilitating trade between different cultures or nations. Historically, these posts served as hubs where merchants could exchange goods, gather information, and establish relationships with local populations. They often included warehouses, living quarters, and sometimes fortifications for protection. The establishment of trading posts was crucial during the age of exploration, as they allowed European powers to expand their influence and access valuable resources in foreign lands. For example, the Portuguese set up trading posts in Asia, exchanging goods like Chinese porcelain and silk for Japanese silver, which played a vital role in global trade networks.

• What role did silver play in trade?

  Silver played a pivotal role in global trade, particularly during the early modern period. It was highly sought after for its value and use in currency, facilitating trade between different regions. The discovery of silver mines in the Americas, especially in places like Peru, led to an influx of silver into global markets. This abundance of silver was crucial for backing currencies, such as China's paper money, which relied on precious metals for stability. The demand for silver also drove the transatlantic slave trade, as European powers sought enslaved labor to work in mines and plantations, integrating West Africa into the global economy and reshaping local societies.

• What is the significance of trade networks?

  Trade networks are significant as they connect different regions and cultures, enabling the exchange of goods, ideas, and technologies. These networks have historically facilitated economic growth and cultural exchange, shaping societies and influencing global dynamics. For instance, the trade routes established by early explorers allowed for the movement of valuable commodities, such as spices and textiles, which were in high demand. Additionally, trade networks often led to the establishment of diplomatic relations and cultural interactions between diverse groups. The interconnectedness fostered by these networks has had lasting impacts on global history, contributing to the development of empires and the spread of innovations across continents.