Analysis of the Factors for Success and Subsequent Decline of Portugal, Spain and the Netherlands on the World Trade Arena in 1500-1650
Analysis of the factors for success and subsequent decline of Portugal, Spain and the Netherlands on the world trade arena in 1500-1650
1. Introduction
The period of 1500-1650 had a crucial impact on the world trade, thus influencing the global economic and political balance. Though the volumes of intra-continental trade in the first half of 16th century were much higher than those of spice and slave movement between the continents, it is obvious that the emergence of the global trade was an event of exceptional importance in the global economic history. Despite it was a desire to trade and profit that motivated the first voyages, it is apparent that conquests and plunder played a crucial role in this process. The roles of different factors to success in the cases of Portugal, Spain and the Dutch Republic and the reasons for fading of their initial successes will be discussed in this essay.
2. Research question
The three main questions this essay sets to answer are: Why was it the three abovementioned countries, and not the others, that were the first to encounter into the trans-ocean trade? What were the prerequisites that determined the timing of these events? And what was the interconnection between the global conquests and trade expansion, i.e. was it the trade that helped the abovementioned countries raise their own economies and finance the conquests of the faraway lands, or was it the war and plundering that allowed to fund the costly voyages to other continents?
3. Data analysis
In order to understand the factors that defined the time and the participants of the trade globalization, it is necessary to understand the balance of power that emerged at the edge of 16th century. Considering that in 15th century Venice and Genoa were enjoying the role of leaders in European imports from the East, with Venice accounting for over 50% of all European spices imports (Findlay, Rourke, 2007, p.140) and gathering enough capital to borrow it to the Western European
1. Introduction
The period of 1500-1650 had a crucial impact on the world trade, thus influencing the global economic and political balance. Though the volumes of intra-continental trade in the first half of 16th century were much higher than those of spice and slave movement between the continents, it is obvious that the emergence of the global trade was an event of exceptional importance in the global economic history. Despite it was a desire to trade and profit that motivated the first voyages, it is apparent that conquests and plunder played a crucial role in this process. The roles of different factors to success in the cases of Portugal, Spain and the Dutch Republic and the reasons for fading of their initial successes will be discussed in this essay.
2. Research question
The three main questions this essay sets to answer are: Why was it the three abovementioned countries, and not the others, that were the first to encounter into the trans-ocean trade? What were the prerequisites that determined the timing of these events? And what was the interconnection between the global conquests and trade expansion, i.e. was it the trade that helped the abovementioned countries raise their own economies and finance the conquests of the faraway lands, or was it the war and plundering that allowed to fund the costly voyages to other continents?
3. Data analysis
In order to understand the factors that defined the time and the participants of the trade globalization, it is necessary to understand the balance of power that emerged at the edge of 16th century. Considering that in 15th century Venice and Genoa were enjoying the role of leaders in European imports from the East, with Venice accounting for over 50% of all European spices imports (Findlay, Rourke, 2007, p.140) and gathering enough capital to borrow it to the Western European