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Creation, Interaction and Expansion of Economic Systems. Mr. Millhouse AP World History Hebron High School. Creation, Interaction and Expansion of Economic Systems. This theme includes: Agricultural and pastoral production Trade and commerce Labor systems Industrialization

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Creation interaction and expansion of economic systems

Creation, Interaction and Expansion of Economic Systems

Mr. Millhouse

AP World History

Hebron High School

Creation interaction and expansion of economic systems1

Creation, Interaction and Expansion of Economic Systems

  • This theme includes:

    • Agricultural and pastoral production

    • Trade and commerce

    • Labor systems

    • Industrialization

    • Capitalism and Socialism

Foundations unit 8000 bce 600 ce

Foundations Unit8000 BCE – 600 CE

Neolithic revolution

Neolithic Revolution

  • Traditional Economy

    • Hunting and gathering

    • Sedentary agriculture developed between 10,000 and 8,000 BCE

      • 1st developed in southwestern Asia

      • Earliest method was slash-and-burn agriculture

      • Subsistence agriculture

    • Herding animals (pastoralism)

Slash-and-burn agriculture in northeast India

Development of agriculture

Development of Agriculture

Economic regions

Economic Regions

Early village economy

Early Village Economy

  • Farming led to the rise of permanent villages

    • Jericho

  • Village life led to specialized labor

  • Development of early industry

    • Pottery, metallurgy, and textiles

Ancient civilizations

Ancient Civilizations

  • Mesopotamia, Egypt, & Indus River Valley

    • Irrigation led to improved agriculture

    • Development of cities contributed to rise of trade

  • China

    • Regular rains & fertile soil minimized irrigation

  • Olmec

    • Develop in rainforest; water control systems

  • Chavin

    • Develop in mountains; complex irrigation

Nile indus corridor

Nile-Indus Corridor

Pre classical labor systems

Pre-classical labor systems

  • Slavery

    • Existed in all early civilizations but was relatively unimportant

    • Most slaves gained through military conquest

  • Egypt

    • Used corvée labor to build pyramids & temples

    • Peasants were bound to the land

    • Men were organized into labor gangs of 50-100

Pre classical labor systems1

Pre-classical labor systems

  • Mesopotamia

    • Large number of slaves due to militaristic nature of society

    • Peasants lost their freedom over time

      • Rise of debt slavery

  • China

    • Zhou dynasty peasants paid a percentage of their crops to aristocrats in exchange for protection

      • Manorial system

Classical civilizations

Classical Civilizations

  • Han China

    • Monopolized production of iron, salt, and liquor

    • Rise of the Silk Road

  • Mauryan India

    • Ashoka built irrigation systems and roads to promote trade

  • Mayans

    • Terrace farming improved production of cotton, maize, and cacao

Classical civilizations1

Classical Civilizations

  • Ancient Greece

    • Cities, such as Athens, become centers of trade

    • Economy depended heavily on slavery

  • Rome

    • Latifundia – large landed estates focused on commercial agriculture (olive oil, wine, wheat)

      • North Africa was the major grain producing region

    • Depended on slave labor

    • Roman roads promoted trade and linked empire to Silk Road

The silk roads


The Silk Roads

Classical era labor systems

Classical era labor systems

  • China

    • Free peasants were the backbone of the labor force

      • Peasants ranked just below bureaucrats but above artisans and merchants

    • Qin Shi Huangdi ended the manorial system

      • “Recruited” labor to build the Great Wall

    • Silk weaving supplemented farm income

      • “Men as tiller, woman as weaver”

    • During the Han dynasty, slaves made up less than 1% of the total population

Classical era labor systems1

Classical era labor systems

  • Greece & Rome

    • Slaves never constituted more than 50% of the population

    • Slaves worked as domestic servants, miners, and farmers

      • In Greece, slaves could serve as tutors

      • In Rome, development of commercial agriculture led to the rise of slavery

      • Rome also used slaves as gladiators and chariot racers

Classical era labor systems2

Classical era labor systems

  • India

    • Caste system was based largely on job classification

      • Farmers did not rank high in prestige

      • Merchants had a higher social standing than they did in China or the Mediterranean

    • Slaves played almost no role in the economy

      • Sudras (lowest caste) and untouchables took the place of slaves

Post classical unit 600 1450

Post-Classical Unit600 – 1450



  • Did not rely heavily upon agriculture

  • Abbasid sakk (checks) encouraged trade

    • Urbanization: Baghdad

  • Dar al-Islam facilitated expansion of trade

    • Islamic law protected merchants

    • Revival of the Silk Road

    • Growth of Indian Ocean trade

      • Dhows increase the volume of maritime trade

Indian ocean trade routes

Indian Ocean trade routes

Chinese junk

East Africa




Arab dhow

Labor in the islamic world

Labor in the Islamic World

  • Islamic slaves were viewed as humans rather than just property (chattel)

    • Slavery was seen as a method of conversion

  • Slaves were acquired from Africa or central Asia

  • Abbasid introduced the use of Turkish slave-soldiers

    • Mamluks

    • Janissaries (Ottoman Empire)

Post classical empires

Post-Classical Empires

  • Byzantine Empire

    • Manufactures glassware, jewelry, & silk

    • Trade a major part of the economy

      • Mediterranean Sea, Silk Roads, Russia, etc.

    • Urbanization: Constantinople

  • Sudanic Africa (Ghana, Mali, Songhai)

    • Trans-Saharan trade

      • Use camel caravans to trade gold, slaves, and ivory for horses, manufactured goods, and salt

    • Urbanization: Timbuktu

Trans saharan trade routes

Trans-Saharan trade routes

Post classical empires1

Post-Classical Empires

  • Swahili Coast

    • Trade gold and parts of exotic animals to Islamic and Indian merchants for products from Persia, India, and China

    • Urbanization: Mogadishu, Kilwa, etc.

  • Great Zimbabwe

    • Supplies gold to the Swahili coast

Tang song china

Tang/Song China

  • Emphasis on internal trade

    • Champa rice & terrace farming

    • Grand Canal & flying money

  • Song “pre-Industrial” era

    • Commercial economy focused on the production of silk, porcelain, & steel

    • Urbanization: Hangzhou

Post classical empires2

Post-Classical Empires

  • Mongols

    • Pastoralists

    • Promoted trade on Silk Road via Pax Mongolica

      • Marco Polo

  • Japan

    • Villages relied on rice cultivation

    • World’s leader in silver production

      • Trade silver to China for manufactured products

    • Development of feudalism caused peasants to become serfs

Medieval europe

Medieval Europe

  • Manorialism

    • Self-sufficient agricultural estates worked by serfs

    • Three-field system & moldboard plow

  • Trade revived after 1000 CE

    • Rise of merchant & craft guilds

    • Crusades led to an increase in demand for Asian products

    • Rise of Italian merchants & the Hanseatic league

    • Urbanization: Italian cities & Paris

Hanseatic league 1400s 1600s

Hanseatic League (1400s-1600s)

Post classical empires3

Post-Classical Empires

  • Aztecs

    • Chinampas

    • Pochteca monopolized long-distance trade

    • Tribute system

  • Inca

    • Built 9,500 miles of roads to facilitate trade

    • Inca socialism

    • Use terrace farming to grow potatoes

    • Mita labor

Early modern era 1450 1750

Early Modern Era1450 - 1750

Rise of world trade

Rise of World Trade

  • European exploration

    • Seeking easier access to Asian luxury products

    • Columbus discovery of the Americas

    • Vasco da Gama reached India in 1498

    • Spain established Manila in 1571

      • Manila galleons connect Asian markets to American silver

  • Trade Empires

    • Spain/Portugal in the 16th century

    • Netherlands (Dutch) in the 17th century

    • England (Great Britain) in the 18th century

European colonization

European Colonization

World trade after 1571

World Trade after 1571

Dutch trade empire

Dutch Trade Empire

Western europe

Western Europe

  • Commercial Revolution

    • Rise of a middle class (bourgeoisie) and proletariat

    • Mercantilism

      • Rise of manufacturing

      • Encouraged colonization

    • Joint Stock Companies

      • Privately owned with government support

      • Ex. Dutch East India Co., Royal African Co., Virginia Company

Economy of new spain

Economy of New Spain

  • Encomiendas

    • Manorial system in the New World

    • Declined with the death of the natives

  • Plantations

    • Majority of labor provided by African slaves

Economy of new spain1

Economy of New Spain

  • Mining

    • Silver “the Heart of the Empire”

    • Largest mine was Potosi

    • Mita labor

  • Haciendas

    • Estates focused on cash crops & livestock

Africa the slave trade

Africa & the Slave Trade

  • Commercial relationship developed between West African kingdoms & Europe

    • Triangle Trade or the Atlantic System

  • Slavery was common in Africa

  • Slave Trade

    • Trade continued with Muslim merchants

    • Increase demand caused by sugar plantations

    • Atlantic slave trade altered traditional African trade routes

African slave trade

African Slave Trade

Emancipation of slaves

Emancipation of Slaves

Ming dynasty

Ming Dynasty

  • Economic Recovery

    • Rebuilt irrigation systems destroyed by the Mongols

    • Increased production of silk textiles & porcelain

  • “Silver Sink”

    • Single-whip tax system

    • Chinese demand for silver contributed to rise of world trade

  • Limited trade to Macao/Canton

Voyages of zheng he

Voyages of Zheng He

  • Established tributary relationships throughout the Indian Ocean

    • Exchanged silk & porcelain for other luxuries

Tokugawa japan

Tokugawa Japan

  • Portugal established trade relations in 1543

  • Trade silver to China in exchange for luxury products

    • 2nd in silver exports behind Spain

  • Began isolation in 1640s

    • Allowed Dutch & Chinese to trade at Nagasaki

  • Urbanization led to rise of a merchant class



  • Peter the Great modernized the economy focused on mining and metallurgy

  • Serfdom

    • Began under Mongol occupation

    • Provided cheap labor for Russian agriculture

    • Could be bought and sold

Mughal empire

Mughal Empire

  • Continued manufacturing cotton textiles

  • British establish trading posts at Madras and Bombay in the early 1600s

    • British East India Company continued to expand their interests into the 1700s

The modern era 1750 1914

The Modern Era1750-1914

Causes of the industrial revolution

Causes of the Industrial Revolution

  • Favorable natural resources

  • Population Pressure

    • Abundance of labor

  • Growth of large manufacturing sector

    • Cottage industry (putting-out system)

  • Advantages in world trade

  • Technological innovation

  • Government support of business

Industrial technology

Industrial Technology

  • Cottage Industry (putting-out system)

  • Mechanization of weaving

    • Cotton that took an Indian worker 500 hours to spin took a machine in England 80 minutes to spin

  • Iron smelting

    • Bessemer steel process

  • Energy

    • Steam engine and electricity

  • Transportation

    • Canals, steamboat, railroads

Economic effects of industrialization

Economic Effects of Industrialization

  • Labor changes

    • Factory labor was dangerous and toilsome

    • Initially women & children work in factories

    • Rise in white collar jobs for new middle class

    • High unemployment rates

    • Labor unions were formed to protect workers

  • Rise of consumer culture

  • Standard of living increases

  • Frequent economic depressions

Economic effects of industrialization1

Economic Effects of Industrialization

  • New economic theories

    • Capitalism

      • Direct attack on mercantilism

    • Positivism

    • Socialism

      • The Communist Manifesto by Karl Marx and Friedrich Engels

      • Communism

Global industrialization

Global Industrialization

  • Industrialization turned nations into either manufacturers of consumer goods or suppliers of raw materials

  • Manufacturers: Western Europe, the United States, Japan, Russia(?)

  • Suppliers: the Ottoman Empire, Egypt, China, India Africa, Latin America, Southeast Asia, Australia

Spread of industrialization in europe

Spread of Industrialization in Europe

Russian industrialization

Russian Industrialization

  • Caused by Russian defeat in Crimean War

  • Abolish serfdom in 1861

    • Do NOT make major reforms to help peasants

  • Limited industrialization

    • Trans-Siberian railroad

    • Focus on heavy industry

      • 2nd in petroleum and 4th in steel production by 1900

      • Do NOT produce consumer goods

    • Lower class women move to cities for factory work

Japanese industrialization

Japanese Industrialization

  • Ends isolation in 1853

  • Abolish samurai class

  • Economic modernization

    • Industrialization

    • Zaibatsu

      • Mitsubishi

    • Women work in silk factories

Africa 1750 1914

Africa: 1750-1914

  • British ended the slave trade in 1807; the United States in 1808

    • England bans slavery in 1833; U.S. in 1863;

  • Natural resources (gold, ivory, palm oil) replace slaves in trade with Europe

  • Muhammad Ali modernizes Egypt

    • Forced peasants to grow cotton for export

    • Built irrigation canals and railroads

    • Successors build the Suez Canal

      • Makes Egypt one of the most strategic places on Earth

The middle east 1750 1914

The Middle East: 1750-1914

  • “Sick Man of Europe”

    • Declining agricultural revenues

    • Large debts to foreign nations

    • European imports exceed exports

      • Caused massive inflation

  • Reforms

    • Creation of a central bank

    • Factories opened in urban areas

      • Relied heavily on European investment and technology

Asia 1750 1914

Asia: 1750-1914

  • India

    • British transform India from supplier of textiles to exporter of raw cotton

      • Also export opium, coffee, and tea

  • China

    • Opium War ends Canton system

      • Opium trade reverses causes silver to flow from China

  • Southeast Asia

    • British establish Singapore and colonize other areas to gain access to raw materials

  • Indentured Servitude

    • Thousands of Indians, Chinese, and Japanese migrated to the Caribbean to replace slave labor

The americas 1750 1914

The Americas: 1750-1914

  • Latin America supplied raw materials to the West in exchange for manufactured goods

    • Influence switched from Spain to England

    • Monroe Doctrine

  • Indentured servitude & immigration replace slavery

  • Mexico and Argentina undergo limited industrialization in the late 1800s

    • Porfirio Diaz

The twentieth century 1914 present

The Twentieth Century1914 – Present

The west

The West

  • Great Depression

    • Causes

      • German economic depression, France & England unable to pay war debt; surplus in agriculture & industry; U.S. stock market crash (October 1929); U.S. bank failures

    • Effects

      • Economic nationalism, expansion of welfare state (New Deal in U.S.), increased government regulation of the economy; political radicalization

The west post wwii

The West: Post-WWII

  • Transition from secondary economy (industrial) to a tertiary economy (service)

    • Growth of white-collar jobs

  • Expansion of the welfare state

  • Economic cooperation

    • European Economic Community (eventually EU)

    • IMF and World Bank

  • Multinational corporations

    • Volkswagon built cars in Mexico for U.S. consumers

Eastern europe

Eastern Europe

  • Russia

    • New Economic Policy

      • Lenin’s response to the Great Depression; minimal impact

    • Collectivization of agriculture

    • Five-Year Plans

      • Command Economy

Latin america

Latin America

  • Export raw materials (crops, rubber, etc.) for manufactured goods

    • Industry dominated by Europe

    • Great Depression had major impact

      • Exports fell by over 65%

  • Import Substitution Industrialization

  • Attempts at economic nationalization was often opposed by the U.S.




  • Export raw materials (cocoa, palm oil, gold, etc.) for manufactured goods

    • Colonial rulers often forced Africans to work in mines or on plantations

  • Post-Independence

    • Debt

    • Emerging markets

      • Low GDP with opportunity for economic growth

    • Violence over resources

      • Conflict diamonds

The middle east

The Middle East

  • Post-Independence

    • Often remained dependent upon trade with Europe

    • Impact of oil economy

      • OPEC

      • Allowed nations to gain tremendous wealth

    • Many countries have used oil wealth to invest in other industries

      • Ford, Citicorp, AIG, etc.

East asia

East Asia

  • Japan, Inc.

    • Government works closely with business

  • Little Tigers

    • South Korea – steel, automobiles, etc.

    • Taiwan – textiles then computers

    • Hong Kong – textiles then banking

    • Singapore – shipping

  • China

    • Five-years plans & collectivization under Mao

    • Four modernizations under Deng Xiaoping

      • Semi-autonomous regions

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