Lesson 3: Exploration and Worldwide Trade

Key Idea

European nations raced to claim land and build colonies in the Americas. Each country had different economic goals for its new territories. Spain, Portugal, France, England, and the Netherlands all hoped to gain wealth and power, but they had unique plans to achieve it.

The Spanish sought gold and silver in Central and South America. The French built a profitable fur trade in the north. English settlers in North America focused on agriculture, establishing large farms to grow valuable cash crops like tobacco and sugar to sell back in Europe.

Key Idea

During this era, European rulers followed an economic theory called mercantilism. They believed a nation's power was based on its wealth, especially its supply of gold and silver. To become richer, a country aimed to export more goods than it imported.

Colonies were essential to this strategy. They provided cheap raw materials, such as timber, sugar, and furs, to the home country. These materials were then turned into manufactured goods and sold back to the colonists and other nations for a profit, increasing the home country's power.

Key Idea

Spain's success in the Americas sparked intense competition. Rival nations like England, France, and the Netherlands were eager to find their own path to Asia's riches. They sponsored explorers to search for a northwest passage, a hoped-for sea route through or around North America.

Explorers like John Cabot, Samuel de Champlain, and Henry Hudson mapped coastlines and rivers. While they never found the passage, their voyages established crucial land claims. These early expeditions paved the way for future English, French, and Dutch colonies, creating a new stage for imperial rivalry in North America.

Key Idea

Funding overseas colonies was expensive and risky. A single person could lose a fortune if a ship sank. To solve this, merchants created new ways to raise money and share the risks of global trade.

One new method was the joint-stock company. This business allowed many people to invest in a venture, like a colony, by buying shares. This spread the costs and risks. If the colony was profitable, all investors shared in the success.