MYP History Colonial and Imperial Trade Systems Notes

How did empires control global trade?

1. Colonial and imperial trade systems were the economic engines that powered European empires from the 1500s to the 1900s.
2. They were built to move wealth from colonies to empires, using laws, armies, taxes, and trading companies to make sure the “right” people benefited.

How empires controlled global trade

They controlled who could trade with whom

1. Empires created strict rules (called mercantilist policies) that forced colonies to trade only with the “mother country.”
   1. Colonies could not sell to rivals.
   2. Colonies had to buy manufactured goods from the empire’s factories.
   3. Raw materials flowed outward; profits flowed back to Europe.

They built global monopolies

1. Imperial governments gave single companies exclusive trading rights.
2. These monopolies could:
   1. raise their own armies
   2. control ports
   3. set prices