The Expansion of Trade Chapter 2 The Expansion

The Expansion of Trade Chapter 2

The Expansion of Trade ► Worldview Inquiry § What impact might increased trade and business have on a society’s worldview?

Vocabulary ► City-states ► Hinterland ► Usury ► Republic

Marco Polo ► Italian Merchant ► Born in Venice in 1254 ► Traveled to Asia with father § Father taught him to be an explorer ► Died in 1324

The Rise of International Trade ► Silk Road § Connected the Mediterranean to the Pacific Ocean ► More than goods traded § Ideas and knowledge ► Few Europeans on Silk Road § Why?

The Crusades and Trade ► Religious wars between Christians and Muslims over the Holy Land ► Four major Crusades § 1096 – 1204 ► Followed the Silk Road § Traders later followed this road.

The Crusades and Trade ► Two important results § Contact with Muslim Civilization § Trade

Contact with Muslims ► More advanced than Europeans § Due to travels and contacts ► Had § § § knowledge of: Medicine Astronomy Philosophy Math Ancient literature ► Welcomed Europeans

Trade ► Many § § § new goods: Oils Spices New varieties of fruit Jewels Rugs Fabrics ► Europeans could not get enough § Trade begins

Most Important Good ► Spices ► Improved taste of food ► Pepper most valuable § Worth more than gold ► Traders from all over Europe came to ports § Caused the price increase.

Renaissance Trade Routes Read page 44 and answer questions

The Italian City-States ► Most countries did not have the same borders as today. ► Most were kingdoms and empires ruled by monarchs. ► Italy was not even a country. § It was a city-state.

City-State ►A city-state consists of a city that is politically independent and the rural area around it. This rural area is called the hinterland. § What are some citystates that exist today? Florence

Success of City-States ► Italian City-States were “in the right place at the right time” to become the wealthiest cities in Europe. ► Successful because: § § Geography Climate Leadership Social Organization

Geography ► Italy was closest to the port cities of Northern Africa. § Spices and other goods to trade. ► Cheapest for Italians to transport using the sea rather than land.

Climate ► Mild climate ► Trade and travel not interrupted by winter ► Long growing season § Olives for cooking oil § Grapes for wine

Leadership ► Most countries in Europe were monarchies (ruled by king or queen) ► Italian City-States had their own governments and armies. ► Venice, Milan, Florence, and Genoa most powerful § Trading, Banking, Business

Social Organization ► Italian City-States did not have a strong sense of Feudalism § What’s that again? ► Nobles wanted to live in towns, not manors. ► Became involved in business and politics. Medici Family

Competition for Trade ► Rivalry for trade. § Genoa and Venice fought over the Mediterranean. ► Venice is easily defended. ► Became important to the far East and Africa. ► Thousands of ships traveling the seas.

Competition for Trade ► Genoa controlled another major part of trade. ► Important to Spanish ports. ► Equal with Venice for centuries. ► Battled Venice and lost § Never regained it’s power.

Commerce in the City-States ► Merchants were wealthy. ► Made money by buying goods in one place and selling it higher in another place. ► Bought finished goods and resources.

Doing Business ► Read p. 51 and answer the following questions: § In which business model would you rather be a worker? Why? § Which model do you think would lead to the growth of business? Why? § What values does each model represent? § Which model do you think is generally followed in today’s society? Explain

Making Money With Money ► Bankers and merchants brought wealth. ► Florence established bank house in Europe. ► The currency “Florin” was the most important of all. ► Usury became important. § Charging interest on loans. § Church said it was sinful

The Church and Money ► Forgave the sin § Needed to encourage investment in trade. ► Allowed interest for: § Trading voyages where shipwreck or pirates were possible ► Italians eventually made new practices to make trade easier

Smart Italians ► Florence competed with other city-states. ► Italian bankers traveled Europe. ► People who were exposed to Italians were impressed with beautiful cities and their sophistication. ► Everyone began spreading Italian values and ideas across Europe.

New Business Practices Business Practice Purpose Partnerships and Joint Stock Company Used to raise money for large projects. Less risk for individuals. Banks Provided money-lending and issuing Bills of Exchange Modern day chequing. Safer than carrying gold. Insurance Paid a small fee to insure goods. If damaged, lost, or robbed, company pays for goods. If goods arrive safely, company keeps fee.

What About the Black Death? Sent economy into depression. ► Italy did not recover until 1500 s. ► Merchants and bankers continued to grow wealthy because of trade. ► Rich spent money on arts and beautification of cities. ► Made citizens loyal and prideful. ►

The Medici Family Read about the Medici Family on p. 54 ► Answer the following questions: ► § Consider why so many Medici met violent deaths, some engineered by family members. § Which factors in the worldviews icon explain the success of the Medici Family? § In what ways did the economic power of the Medici affect their role as citizens of Florence?

Cheat Sheet Success of Northern City. States ► Canadian cities (geography) ► Positives and negatives to trade. ► 2 important results from crusades. ► Northern Italy compared to rest of Europe. ►

Performance Task ► You are Josephine Amee, a merchant visiting Genoa. A trading ship has just arrived in the Italian port loaded with goods from the East. Write a letter to the mayor, François Fillon, of your town in the French Alps informing him of what life is like in Genoa. Keep in mind the writer comes from a different geographical setting and thus has different experiences and worldview. ► Your address is: § § § ► 15234 – 11 St Genoa, IT T 5 X 3 P 3 Italy The mayor’s address is: § 7012 – 15 St § Belfort, PR T 5 Z 4 L 9 § France