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Economics Creation, Expansion, and Interaction of Economic Systems AP World History - Thematic Review Economics Creation, Expansion, and Interaction of Economic Systems Major transitions in trade: From bartering to regional trade to long-distance trade ​ Economic systems: Agricultural, pastoral, industrial ​ Labor systems: Forced labor, farmers, capitalism, socialism ​ Source: McCannon, John. Barron's AP World History. Barron's, 2018. ​ ​ ​ Economics Period 1 (8000 BCE - 600 BCE ) ● Hunting and foraging Before 8000 BCE ● Barter and limited trade ● Hunting and foraging 8000 - 3500 BCE ● Domestication of animals gives rise to nomadic pastoralism (Neolithic Era) ● Domestication of plants gives rise to early agriculture ● Early regional trade networks ● Agriculture spreads ● Trade networks become regional and transregional slavery emerges (household 3500 - 1200 BCE servitude and hard labor) ● Mesopotamian-Indus trade (Bronze Age) ● Mesopotamian-Egyptian trade ● Nubian-Egyptian trade ● Phoenician trade in the Mediterranean 1200 - 600 BCE ● Agriculture spreads further ● Regional and transregional trade networks become more extensive (Iron Age) ● Coins first used as currency ● Hunting and foraging emerged as the means of livelihood for most Stone Age peoples. Hunter-forager societies lived at subsistence levels and possessed few goods. Labor specialization was limited, while trade, where it existed, was based on simple barter. ● During the Neolithic Revolution, domestication of animals gave birth to pastoralism, an economic ​ ​ ​ practice based on herding, which made it easier to maintain a constant supply of food. Most pastoral herders were nomadic. ● Also during the Neolithic Revolution, domestication of plants gave birth to agriculture. Even more ​ ​ so than pastoralism, agriculture ensured not just a constant supply of food, but food surpluses that ​ caused profound social changes (including the accumulation of wealth and the concept of private ​ property). ● Trade became more common, first on a local basis, then at the regional and transregional levels. ​ Cities served as important points of economic exchange. ● Trade networks extended overland, but tended to follow rivers and coastlines where they could, because large-scale transport was easier by water than by land. Important transregional trade ​ networks include Mesopotamian-Egyptian trade, Egyptian-Nubian trade, trade between Mesopotamia ​ and the Indus River valley, and Phoenician trade throughout the Mediterranean. Economics Period 2 (600 BCE - 600 CE) ● Mediterranean trade network European and the ● Standard currencies, weights, and measures Mediterranean ● Slavery and corvée ● Intensive agriculture (wheat) ● Mediterranean trade network ● Silk Road ● Trans-Saharan caravan routes Middle East ● Standard currencies, weights, and measures ● Slavery and corvée ● Intensive agriculture (wheat) ● Trans-Saharan caravan routes ● Indian Ocean trade network Africa ● (Mediterranean trade network) ● Slavery ● Silk Road East (and Central) ● Indian Ocean trade network ● Standard currencies, weights, and measures Asia ● Slavery and corvée ● Intensive agriculture South (and ● Indian Ocean trade network ● Standard currencies, weights, and measures Southeast) Asia and ● Slavery and corvée Oceania ● Intensive agriculture (rice) ● Mit’a labor obligation Americas ● Intensive agriculture (corn, potatoes) ● Transregional trade was practiced on a larger scale and over greater distances than before. This ​ change stemmed from innovations in overland and maritime transport. ● Major trade networks of the era included the Mediterranean Sea, the Indian Ocean basin, ​ trans-Saharan caravan routes, and Eurasia's Silk Roads. ● Mobilizing resources and ensuring a steady supply of food became chief state priorities. ● Infrastructure - which included markets, roads, harbors, and other facilities built and maintained by states - supported local, regional, and transregional trade. ● Cities became increasingly important as centers of trade. ● Tax collection and the gathering of rents became more efficient and intrusive. ​ ● Currency came to be used in a growing number of regions, greatly facilitating trade. Economics Period 3 (600 - 1450 CE) Region 600 - 900 CE 900 - 1200 CE 1200 - 1450 CE ● Open-water navigation ● Feudal manorialism ● Feudal manorialism improves (impact of Viking (serfdom) (serfdom declining in longships) ● Revival of European and Western Europe) ● Feudal manorialism Mediterranean trade ● European and (serfdom) ● Guilds (artisans and Mediterranean trade Europe craftsmen) intensifies ● Italian peninsula and ● Guilds (artisans and Mediterranean trade craftsmen) ● Crusades stimulate ● Italian peninsula and appetite for goods from the Mediterranean trade east ● Hanseatic League ● Silk Roads ● Silk Roads partly disrupted ● Silk Road revives Middle East ● Mediterranean trade ● Trans-Saharan caravans (Arab-Berber expertise with camels) ● (connection with Indian Ocean basin) ● Salt, gold, ivory ● Salt, gold, ivory ● Rise of Swahili city-states ● Swahili city-states Africa ● Pastoralism continues in many areas ● Mediterranean trade ● Trans-Saharan caravans (Arab-Berber expertise with camels) ● Indian Ocean trade ● Nomadic pastoralism ● Silk Roads partly disrupted ● Silk Road revives continues in steppe zone ● Grand Canal in China ● Nomadic pastoralism continues in steppe zone East (and ● China’s regional trade ● Silk Roads partly disrupted Central) Asia network ● Connection with Indian Ocean basin ● Silk Roads ● Silk, iron, steel, and porcelain industries expand in China ● Connection with Indian ● Feudal landholding in Japan (serfdom) Ocean Basin South (and ● Indian Ocean trade ● Cotton industry in India Southeast) Asia ● Spices ● Pastoralism continues in many areas Americas ● Mit’a labor system in Andes ● Trade networks in Mesoamerica, the Andes, and the Mississippi Valley ● General rise in agricultural production (due to technological innovation) ● Increased craft production ● New trading cities and merchant classes GLOBAL AND ● Luxury goods fuel expansion of trade networks INTERREGIONAL ● Coins and paper money ● Credit and banking become more common ● Slavery and serfdom become increasingly common ● Little Ice Age begins Broad Trends Period 3 (600 - 1450 CE) ● Economic production increased globally. ● Transregional trade was practiced on a massive scale. Existing routes, such as the Silk Roads, the ​ Mediterranean sea lanes, the trans-Saharan caravan trails, and the Indian Ocean basin, witnessed huge upswings in commercial activity. New routes expanded trade in Mesoamerica and the Andes ​ as well. ● New cities emerged as key centers for interregional trade. They include Venice, Novgorod, ​ ​ Baghdad, the Swahili city-states, Timbuktu, Hangzhou, Melaka (Malacca), Calicut, Cahokia, and Tenochtitlan. ● Trading organizations like northern Europe's Hanseatic League came into existence. ​ ​ ● Demand for luxury goods assumed a more prominent role in interregional commerce. Silk, cotton, ​ ​ porcelain, and spices from the Middle East and South and East Asia became especially important. ● In Afro-Eurasia trade was made easier and safer by the emergence of new forms of banking and ​ monetization (credit, checking, banking houses), as well as state practices like the minting of coins ​ ​ and the printing of paper money. Customs agencies and standard weights and measures helped to ​ regulate and regularize trade. ● Interregional trade was facilitated by the warmer weather of the medieval climatic optimum and then affected by the global cooling that led to the Little Ice Age. ● Technological innovation played a role in expanding trade, especially in the fields of ship design ​ (including the Viking longboat, the Indian Ocean dhow, and the Chinese junk) and navigation ​ ​ ​ ​ ​ ​ ​ (especially the astrolabe and the magnetic compass). Also important was the effective adaptation of ​ ​ ​ ​ environmental knowledge (such as Saharan camel herders' knowledge of the desert or Central Asian pastoralists' use of horses for steppe travel). ● Agricultural production increased worldwide, thanks partly to climatic changes, partly to ​ technological innovations (including the horse collar, better terracing, rice cultivation in Asia, and warn warn and chinampa techniques in the Americas). Economics Period 4 (1450 - 1750 CE) ● Joint-stock companies (including Dutch East India Company, Hudson's Bay Company, British East India Company) Europe ● Investment disasters ("bubbles"): tulipmania, Mississippi Bubble, South Sea Bubble ● Mercantilism ● Cottage industry and proto-industrialization ● Decline of Silk Road ● Omani-European rivalry in Indian Ocean and East Africa Middle East ● Ottoman-Persian competition over Indian Ocean trade ● Carpets ● Arrival of European traders ● Omani-European rivalry in Indian Ocean and East Africa Africa ● Arab slave trade continues ● Atlantic slave trade begins and intensifies East (and Central) ● Decline of Silk Road ● Appearance of European traders Asia ● Porcelain and tea South (and ● Appearance of European traders ● Omani-European rivalry in Indian Ocean Southeast) Asia and ● Ottoman-Persian competition over Indian Ocean trade Oceania ● Cotton and spices ● European piracy and privateering in Caribbean ● Rise of plantation and cash-crop agriculture Americas ● Increased reliance on slavery and coerced labor ● Sugar, cotton, tobacco, coffee, silver ● Global circulation of trade goods (finished products and raw materials) ● Piracy, privateering, and state competition over trade routes ● Triangular trade in the Atlantic GLOBAL AND ● Influx of New World silver
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