5.1 II

Welcome back, readers! We have made it through both parts of 5.1 I. Now, lets dive right into 5.1 II. Today we will discuss how new patterns of global trade and production developed and further integrated the global economy.

5.1 II: New patterns of global trade and production developed and further integrated the global economy as industrialists sought raw materials and new markets for the increasing amount and array of goods produced in their factories.

    A: The need for raw materials for the factories and increased food supplies for the growing population in urban centers led to the growth of export economies around the world that specialized in mass producing natural resources. The profits from these raw materials were used to purchase finished goods.

       1) Natural resources, such as cotton, rubber, palm oil, sugar, wheat, meat, guano (fertilizer) and metals were exported from all around the world to Britain and other European countries where they could produce things like textiles. These could then be sold back to countries for the producer's own prices*.

*Quick side note: This process is called Mercantilism. Mercantilism is also a factor in the American Revolution, as the Americans felt they were being unfairly taxed for things from Britain that Britain created with their natural resources.

    B: THe rapid development of steam-powered industrial production in European countries and the US contributed to these regions' increase in their share of global manufacturing. While Middle Eastern and Asian countries continued to produce manufactured goods, these regions' share in global manufacturing declined.

       1) Iron works in India were exported and contributed about 10% of India's gross national product. However, there was a heavy British influence. The East India Company and the gov't became rich off of high taxes and taking more of India's prosperity.

       2) Textile production in India and Egypt were particularly prosperous. It did however make life difficult for some people, particularly artisans. They could not be employed which caused a decline in manufacturing. 

    C: The global ecconomy of the 19th century expanded dramitically from the previous period due to increased exchanges of raw materials and finished goods in most parts of the world. SOme commodities gave merchants and companies based in Europe and the US a distinct ecomonic advantage. 

       1) Opium produced in the Middle East or South Asia and exported to China expanded the global economy because opium was in so high demand in China, that many merchants became rich off of smuggling it in. 

       2) Cotton and palm oil were exported to Britain and other European countries. This in turn expanded Europe's economy because it meant that they could export their product at their own prices.

    D: The need for specialized and limited metals for industrial production, as well as the global demand for gold, silver, and diamonds as forms of wealth, led to the development of extensive mining centers.

       1) In Mexico, there were rich ores of copper, resulting in many copper mines

       2) Gold and diamonds were always in popular demand. As a result, many mines formed in South Africa.

Next time, we'll talk about 5.1 III. See you then!