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

Recent questions

• What is a trade route?

  A trade route is a path or network used for the exchange of goods and services between different regions or countries. Historically, trade routes have played a crucial role in the development of economies and cultures, facilitating the movement of commodities such as spices, textiles, and precious metals. These routes can be overland, like the Silk Road, or maritime, such as the sea routes established by European explorers. The establishment of trade routes often leads to increased interaction between diverse societies, resulting in cultural exchanges, economic growth, and sometimes conflict over resources and territory.

• How do empires manage colonies?

  Empires manage colonies through a system of governance that often includes appointed officials, military presence, and economic exploitation of resources. Colonial management typically involves establishing a viceroyalty or similar administrative structure to oversee the territory, enforce laws, and collect taxes. The empire may implement policies to extract wealth, such as through agriculture, mining, or trade, while also attempting to integrate the local population into the empire's economic system. This management can lead to significant cultural and social changes in the colonies, as well as resistance and conflict as local populations respond to imperial control.

• What is the significance of silver in trade?

  Silver has historically been a significant medium of exchange in global trade, particularly during the early modern period. It served as a standard currency that facilitated transactions between different economies, especially in regions like China, where silver was crucial for backing paper currency. The demand for silver spurred extensive mining operations in the Americas, leading to wealth accumulation for European powers and impacting labor systems. Additionally, silver trade linked various economies, creating interdependencies that shaped international relations and trade dynamics, influencing everything from local economies to global market trends.

• What was the Iberian Union?

  The Iberian Union was a political union that occurred in 1580 when the crowns of Spain and Portugal were united under a single monarch, King Philip II of Spain. This union aimed to consolidate power and resources, allowing for a more coordinated approach to trade and colonial expansion. The Iberian Union significantly impacted the global trade networks of the time, as it combined the vast empires of both nations, amplifying the demand for commodities like silver and spices. However, this union also led to tensions and conflicts, particularly with other European powers, as the combined resources of Spain and Portugal posed a formidable challenge to their rivals.

• What role did Japan play in trade history?

  Japan played a pivotal role in trade history, particularly during the late 16th and early 17th centuries when it became a focal point for European traders. The arrival of foreign traders, such as the Dutch and Portuguese, introduced new goods and ideas to Japan, while also allowing Japan to export valuable resources like silver. The complex interactions between Japanese authorities and foreign traders often involved negotiations and trade agreements, reflecting the intricacies of international relations at the time. Japan's strategic position in East Asia made it a critical player in the broader context of global trade, influencing economic patterns and cultural exchanges across the region.