MODERN ERA

1. MODERN ERA INTERACTIONS: 1750 - 1914

2. THEMES • Modernization • Reform, industrialization, progress minus Westernization • Westernization • The west as the cultural, economic, political model • Democratization • Increasing franchise, increasing governmental voice • Industrialization, Mechanization • Machines, technology replace human, animal muscle • Mass production of items, decreasing prices • Commercialism, Consumerism • Capitalism, profit, buying replace tradition, command in economics • Disruptions, Conflict, War • Change marks all societies leading to conflict, war • Population Movements • Urbanization, Immigration, Migration • Western Global Hegemony • It is the West and all of the Rest • Globalization or Diversity • Global Unity vs. Regional Autonomy; Think Globally, Act Locally

3. MODERN ERA INTERACTIONS: WARS & CONFLICT 1750 - 1914

4. THE FIRST “WORLD” WARS • 1750 - 1765 • War of Austrian Succession and Rise of Prussia • France, Spain, England, Portugal, Dutch, Russia, Sweden in wars • Rise of Prussia as a great power, England as a super power • Showed balance of power doctrine at its fullest • Colonial Wars • Battles fought around the world • Colonies changed hands, colonials effected • English, French contest for North America • France lost influence in North America, Caribbean, India • England emerges as world’s super power • British navy rules seas unopposed • Acquires former French North American colonies • Acquires preeminent influence in India • Acquires right to supply slaves to Spanish Americas • Spain, Portugal, Dutch no longer great powers • American Revolution 1776 – 1783 and the Wider World Impact • British colonists revolt, inspired by Enlightenment • American ships ranged seas attacking English • Dutch, French, Spanish support colonial efforts • Dispatch aid, ships, troops to fight British in colonies, on seas • Spain invades English colonies to support colonists • Russians, Prussian, Swedes pledge an armed neutrality against UK • Treaty of Ghent ends war, gives Americans independence • Canada begins to rise as British loyalists immigrate to area • Led to bankruptcy of France and French Revolution • Great impact, influence on Latin Americans, European reformers

5. WAR OFAMERICANINDEPENDENCE

6. THE FRENCH & NAPOLEON • An Era of Global Conflict from 1792 to 1814 • French Revolution as Interaction • French revolutionary success sparked interest throughout Europe, Americas • Many revolutionary regimes set up by French armies in Italy, Germany • Haiti rebels during French Revolution • Spanish American colonies achieve independence • Napoleon Bonaparte (1769-1821) • Brilliant military leader; upset the Balance of Power • Became general in royal army at 24 • Supported the revolution; defended the Directory • His invasion of Egypt was defeated by British army • Overthrew Directory; named himself consul for life • Napoleon's empire • 1804, proclaimed himself emperor • Dominated the European continent • Annexed lands in Italy, Netherlands, Germany, Spain; controlled other thrones • Defeated Austria and Prussia, Occupied Spain and Portugal, allied with Scandinavia • Perennial Enemy: Great Britain who controlled the high seas • Disastrous invasions of Spain, Russia in 1812 destroyed Grand Army • The fall of Napoleon • Forced by coalition of enemies to abdicate in 1814, exiled on Elba • Escaped, returned to France, raised army • Defeated by British in 1815 at Waterloo, exiled to St. Helena • Collapse of much of Dutch, Spanish, Portuguese, French empires • Great Britain became literally the only surviving major colonial power

7. EUROPE 1812 & 1815

8. RUSSIAN EXPANSION • Nineteenth-century Russia • Collapse of Napoleon left Russia as great power • Russia dominates Eastern Europe (saved both Prussia, Austria) • Russia increased presence in Central Europe, Northern Europe • Russia wants to push into Ottoman SE Europe, SW Asia • Expands into Central Asia, Pacific • Autocracy, Orthodoxy, Conservatism • Official government policy to uphold conservatism • Pre-destined Russia to oppose revolution, change everywhere • Rise of Pan-Slavic Nationalism • Sought to control all Orthodox, Slavs • Brought Russia into conflict with Ottoman Empire, Austria in Balkans • Also wanted access to Mediterranean Sea • Hoped to seize control of Constantinople • War against the Ottoman Empire • Numerous wars to acquire Turkish lands in SE Europe, Caucasus • Supported rise of Christian Balkan states under Russian influence • Crimean War 1853 - 1856 • France, Great Britain, Sardinia supported Ottomans • Crushing defeat; forced tsars to modernize army, industry • Russo-Japanese War 1904-1905 • Russian expansion into China, Korea met Japan • Japanese attack Russia without warning • Defeat two Russian fleets, armies • First defeat of a European by an Asian power • Japan emerges as a world military power

9. RUSSIAN EMPIRE

10. THE SICK OLD MAN OF EUROPE • The issue of Ottoman State called the Eastern Question • A central concern of European diplomacy from 1800 to 1914 • At issue was whether to preserve or partition Ottoman Empire • By 1800s, Ottoman Empire a dying state • Central government • Horribly corrupt, unable to reform, unviable • Central authority breaks down and provinces begin to rebel, break off • Multinational state • Greeks, Slavs, Albanians, Rumanians, Jews, Arabs, Kurds, Armenians • Conflicting traditions demanding autonomy • Nationalism affects some subject peoples • Mehmet Ali of Albania seeks independence • Muhammad Ali of Egypt seeks independence • Greek Rebellion in 1820 achieves independence • Serbs, Bulgars, Rumanians, Albanians follow in late 19th century • Russians, Austrians prey on Ottoman Territory • Russians constantly looking to take over territory • Austrians, Germans, French, English oppose Russian designs • French, English interested in markets, protecting Suez Canal • Balkan Wars and the Ottoman Empire • Congress of Berlin 1878 • Territory lost to Austria, Russia • Serbia, Montenegro, Rumania, Bulgaria declared independent • Westerners intervene to protect Christians, economic interests • Often Russia was the loser and it bred Russian resentment • Balkan Wars led to a Russo-France alliance and the Austro-German alliance • England very troubled by late period German interest in Ottoman Empire • World War I was often called the last of the Balkan Wars

11. THE DECLINEANDPARTITIONOF THEOTTOMAN EMPIRE

12. EGYPT & THE WORLD • Napoleon’s Invasion of (Egypt) Ottoman Empire • French Revolution and ideas influence Ottoman Europeans • Napoleon invaded Egypt, made radical changes while in possession • Introduced westernization, nationalism into Egypt • Destroyed Mameluk army without serious loss • Showed the weakness, outdated nature of the Muslim institutions • English halt invasion and restore Turkish control of Egypt • Muhammad Ali emerges as ruler of Egypt after Napoleon • Began process to modernize Egyptian army • Hired European officers, adopted European tactics • Invaded Syria; builds modern fleet to invade Greece, Turkey • Modernizes economy to support military • Increased production of cash crops for export: cotton, hemp, indigo • Improved harbors, irrigation, increased revenues • Reform frustrated by worried Europeans, traditional Muslims • Europeans destroy navy at Battle of Navarino • Khedives and European Intervention • Successors to Muhammad Ali ruled Egypt, Sudan until 1956 • Egypt: single export crop economy (cotton): vulnerable to fluctuations • Khedives unable to balance expenses, borrowed heavily from Europeans; in debt • The Suez Canal • French build canal connecting Mediterranean, Red Sea (1869); controlled Egyptian debt • Canal becomes critical to British empire, route to Asia; purchased Khedive’s stock • British, French intervened militarily in 1882 when Khedive could not pay debts • Khedive calls in British troops to protect him from army revolt • British intervened, ruled Egypt through puppets, the Khedive • British officers controlled Egypt’s finance, foreign affairs; protect Canal

13. AMERICAN CIVIL WAR • War not just an American domestic conflict • France, UK nearly intervened for South • Both dependent on Southern cotton • Both provided aid to Southern blockade runners • France and Mexico 1863 - 1867 • Revolution ousted Santa Anna; Juarez new leader • Mexico owed Europeans money • Europeans occupy Veracruz, ignored Monroe Doctrine • France set up a puppet regime under Austrian emperor • Austria, Prussia, Russia supported North • Saw Southern secession as revolt against legitimacy • Poland 1863: Three nations suppressed rebellion • Three nations warned France, UK not to get involved • Russian fleets anchored in Northern ports • US bought Alaska in 1867 to repay Russia for support • Prussia observed Union military • Learned from Northern art of war, rebuilt army • Increased use of railroads as instrument of war • Emancipation Proclamation, Gettysburg Address • Had world impact • Reminded French, English that North not South represented democracy • Came at same time as the Russian emancipation of their serfs • Union’s Industry and Agriculture productivity increased • Northern industry boomed; after war turned to exporting finished goods • Northern agriculture mechanized to support war; increased productivity, exports • Egypt and India developed • Cotton production increased to offset loss of American cotton • UK and France increased interests in Egypt, India • Brazil became last slave holding regime in Americas after 1865

14. MEXICO IN MODERN ERA:INSTABILITY AND FOREIGN INTERVENTION • Mexican Republic under Santa Anna • Until his death dominated Mexico • Saw himself as a Latin Napoleon • Constantly in debt to foreigners • Revolt of Texas led to conflict with US • Mexican American War 1846 – 1848 • Mexico lost 1/3 of its territory • Treaty of Guadalupe Hidalgo • US expanded to Pacific and annexed Texas • The French Intervention • Benito Juarez • Liberal Indian President of Mexico • He started a liberal revolt • La Reforma which was powerful • Conservatives turned to French for support • French troops land • French install an Austrian emperor on throne • Backed emperor with French troops, French money • US demanded French withdrawal in 1867 • Supply insurgents with arms; Juaristas win • Diaz Era Dictatorship to 1910 • Encouraged foreign investors • Built rails, telegraphs; developed mines, plantations • Country largely became property of American businesses • Mexican oligarchy and foreign investors got wealthy • Average Mexican standard of living declined; Indians exploited

15. OPIUM WARS • 1795 Maccauley Mission and After • British send diplomatic, trade delegation to China • Chinese tell British they are not interested in trade • China made mistake of underestimating Europeans • Forced British, Europeans to trade through Canton • Chinese exported silks, porcelains, teas for silver • Chinese refused to trade for manufactures • Opium trade • A serious threat to Qing dynasty by 19th century • Cohong system restricted foreign merchants to Canton • China had much to offer, but little demand for European products • East India Company cultivated opium to trade for Chinese goods • British found that Chinese would trade for opium • 1810: 4500 chests weighing 133 pounds yearly • By 1839, 40,000 chests traded yearly • Opium draining revenue, destroying economy, society • By 1838, 1% of 400 million Chinese were addicted • The Opium War (1839-1842) • Commissioner Lin Zexu directed to stop trade • British merchants refused • Lin confiscated, destroyed 20,000 chests of opium • British reaction • British retaliated, easily crushed Chinese forces, destroyed Grand Canal • British navy destroyed Chinese navy with steam gunboats • British army invades and emperor sues for peace • 2nd Opium war erupts in 1850s which the British won • British begin using Hong Kong and five other ports • 2nd Opium War in 1860s: France, UK crush China

16. CHINA: UNEQUAL TREATIES • Unequal treaties forced trade concessions from Qing dynasty • Treaty of Nanjing, 1842 • Britain gained right to opium trade • Obtained most-favored-nation status • Hong Kong ceded to Great Britain • Called unequal treaties • Made with western countries and Japan • Extraterritoriality • Foreigners not subject to Chinese laws • Criminal acts tried in Western courts • Chinese crimes against westerners tried in western courts • By 1900, China lost control of economy to foreigners • Foreigners invest in China, control industry • Ninety ports open to foreign powers • Foreigners issued own stamps, had own post • Spheres of influence eroded Chinese power • Foreign powers seized Chinese tribute states • Vietnam (France) • Burma (United Kingdom) • Korea, Taiwan (Japan) • Effective partition of China by 1898 • China carved into spheres of economic influence • France: Southern China • UK: Canton area, Shantung area, Yangzte River, Tibet • Russia: Manchuria, Sinkjiang • Japan: Amoy area across from Taiwan, Southern Manchuria • Chinese government ineffective • Foreign merchants, missionaries free to run about country • Foreign legations (embassies) control many cities • Western, Japanese ships sail up, down rivers without interruption

17. CHINA & CONCESSIONS

18. MODERN ERA INTERACTIONS: IMPERIALISM 1750 - 1914

19. IMPERIALISM • Motives of imperialism • Modern imperialism • Refers to domination of industrialized countries over subject lands • Domination achieved by trade, investment, business activities • Two types of modern colonialism • Colonies ruled and populated by migrants • Colonies controlled without significant settlement • Economic motives of imperialism • European merchants made personal fortunes • Expansion to obtain raw materials • Colonies were potential markets for products • Political motives • Strategic purpose: harbors, supply stations • Overseas expansion used to defuse internal tensions • Cultural justifications of imperialism • Christian missionaries sought converts in Africa and Asia • "Civilizing mission“/"white man's burden“ justified expansion • Tools of empire • Transportation technologies supported imperialism • Steam-powered gunboats reached inland waters of Africa and Asia • Railroads organized local economies to serve imperial power • Western military technologies increasingly powerful • Firearms: from muskets to rifles to machines guns • In Battle of Omdurman 1898, British troops killed eleven thousand Sudanese in five hours • Communication technologies linked imperial lands with colonies • Oceangoing steamships cut travel time from Britain to India to weeks • Telegraph invented in 1830s, global reach by 1900 • Difference between colonialism and imperialism

20. EMPIRE IN ASIA • The British empire in India • Company rule under the English East India Company • EIC took advantage of Mughal decline in India, began conquest of India in 1750s • Built trading cities and forts at Calcutta, Madras, Bombay • Ruled with small British force, Indian troops called sepoys • Sepoy Rebellion, 1857: attacks on British led to reprisals • British imperial rule replaced the EIC, 1858 • British viceroy and high-level British civil service ruled India • British appointed viceroy, ran all domestic, foreign policy • Indians held low-level bureaucratic positions • Economic restructuring of India, Ceylon (Sri Lanka) • Introduction of commercial crops: tea, coffee, opium • Built railroads, telegraph lines, canals, harbors, irrigation • Did not interfere with Indian culture, religion • Established English-style schools for Indian elites • Outlawed Indian customs considered offensive, (sati) • Imperialism in central Asia and southeast Asia • "Great Game" refers to competition between Britain, Russia in central Asia • By 1860s Russian expansion reached northern frontiers of British India • Russian and British explorers mapped, scouted, but never colonized Afghanistan • Russian dominance of central Asia lasted until 1991 • Dutch East India Company held tight control of Indonesia (Dutch East India) • British colonies in southeast Asia • Established colonial authority in Burma, 1880s • Port of Singapore founded 1824; was base for conquest of Malaya, 1870s • French Indochina created, 1859-1893 • Consisted of Vietnam, Cambodia, Laos--former tribute states of Qing dynasty • French encouraged conversion to Christianity, established western-style schools • Thailand left in place as buffer between Burma and Indochina

21. IMPERIALISM IN ASIA

22. SCRAMBLE FOR AFRICA • 1875 and 1900 • European powers seized almost the entire continent • Early explorers charted the waters, gathered information on resources • Missionaries like David Livingstone set up mission posts • Henry Stanley sent by Leopold II of Belgium to create colony in Congo, 1870s • To protect their investments and Suez Canal, Britain occupied Egypt, 1882 • South Africa • Settled first by Dutch farmers (Afrikaners) in seventeenth century • By 1800 was a European settler colony with enslaved black African population • British seized Cape Colony in early nineteenth century, abolished slavery in 1833 • British-Dutch tensions led to Great Trek of Afrikaners inland to claim new lands • Mid-19TH century, they established Orange Free State in 1854, Transvaal in 1860 • Discovery of gold and diamonds in Afrikaner lands; influx of British settlers • Boer War, 1899-1902: British defeated Afrikaners, Union of South Africa • The Berlin Conference, 1884-1885 • European powers set rules for carving Africa into colonies, Africans not invited • Occupation, supported by European armies, established colonial rule in Africa • By 1900 all of Africa, except Ethiopia and Liberia, was controlled by European powers • Colonial rule challenging and expensive • "Concessionary companies": granted considerable authority to private companies • empowered to build plantations, mines, railroads • made use of forced labor and taxation, as in Belgian Congo • unprofitable, often replaced by more direct rule • Direct rule: replacing local rulers with Europeans--French model • justified by "civilizing mission" • hard to find enough European personnel • Indirect rule: control over subjects through local institutions--British model • worked best in African societies that were highly organized • assumed firm tribal boundaries where often none existed

23. AFRICA 1880 & 1914

24. EMPIRES IN THE PACIFIC • Australia and New Zealand • Both became settler colonies in the Pacific • 1770, Captain Cook reached Australia, reported it suitable for settlement • 1788, one thousand settlers established colony of New South Wales • Became a penal colony after loss of Georgia in American Revolution • 1851, gold discovered; surge of European migration to Australia • Fertile soil and timber of New Zealand attracted European settlers • Europeans diseases dramatically reduced aboriginal populations • European flora and fauna replaced most native species • Large settler societies forced indigenous peoples onto marginal lands • Pacific Islands • Spain and the Pacific • Pacific had been a Spanish possession until 19th century (Philippines, Micronesia) • Spanish yearly shipments of silver from Mexico to China ended in 1812 • Colonization of Pacific Islands delayed until late nineteenth century • Early American visitors to the Pacific • American Whalers throughout region after American revolution • American merchants on way to China began in 19th century • California Gold Rush open Pacific coast to immigrants from Europe, China • US challenged rule in 1854 when Commodore Perry forced Japan to open ports • Some missionaries active especially in Hawaii and on way to China • Late nineteenth century, • European states sought coaling stations and naval ports • 1867: USA acquires Alaska, Wake Island • 1898: USA acquires Hawaii, Philippines, Guam • 1899: German buys remaining Spanish islands • By 1900, all islands claimed by France, Britain, Germany and United States. • Island plantations produced sugarcane, copra, guano

25. EMPIRES IN THE PACIFIC

26. U.S. IMPERIALISM • Westward Expansion, Manifest Destiny precede overseas imperialism • Americans push west after American revolution • Drove Indians from land • US purchases Louisiana from France • Opened up West to settlement • Americans saw it as God-given right to occupy continent • The Monroe Doctrine and Latin America • 1823: proclamation by U.S. president James Monroe • Opposed European imperialism in the Americas • Justified American interventions in late 19th, 20th century • Used doctrine to tell France to withdraw from Mexico in 1867 • United States purchased Alaska from Russia in 1867 • Hawaii became a protectorate in 1875, formally annexed in 1898 • Tended to leave area open only for American investments, loans • The Mexican American War 1846 – 1848 • US annexation of Texas set off conflict with Mexico • US defeats Mexico, annexed 1/3 of Mexican territory • Settlement of Far West, Pacific Coast, Great Basin follows • 1867 – 1898 • Acquires small Pacific Islands, Alaska from Russia in 1867 • Economic interests in Hawaii lead to revolution, annexation in 1898 • The Spanish-American War (1898-99) • US defeated Spain and took over Cuba, Puerto Rico, Guam, and Philippines • US and Philippines • Backed Filipino revolt against Spain, purchased and took over the colony • 1902-1904, bitter civil war killed two hundred thousand Filipinos, ended in U.S. victory • The Panama Canal, 1903-1914 • Colombian government refused U.S. request to build canal at Panama isthmus • US helped rebels establish the state of Panama for the right to build a canal • Completed in 1914; gave United States access to Atlantic and Pacific

27. MANIFEST DESTINYWhat one painting can tell us

28. MAP OF AMERICAN IMPERIALISM

29. IMPERIAL JAPAN • Japan and the West • 1854: US Commodore Perry forces Japan out of isolation • Japanese resented unequal treaties of 1860s • Borrowed western knowledge • Resolved to become imperial power • Early Japanese expansion in nearby islands • 1870s, to the north: Hokkaido, Kurile islands • By 1879, to the south: Okinawa and Ryukyu Islands • Meiji Government • Prussia trained Japanese army, Britain trained Japanese navy • Bought British warships, built up navy, began building own ships • Established military academies • 1876, imposed unequal treaties on Korea at gunpoint • Made plans to invade China • The Sino-Japanese War (1894-95) • Rebellion in Korea: Chinese army sent to restore order, reassert authority • Meiji leaders declared war against China, demolished Chinese fleet • China forced to cede Korea, Taiwan, Pescadores, Liaodong peninsula • Japan helps suppress Boxer Rebellion, creates own zones in China • The Russo-Japanese War (1904-05) • Russia had territorial ambitions in Liaodong peninsula, Korea, Manchuria • Japanese navy destroyed local Russian forces • Reinforcements from Baltic sunk at Battle of Tushima • Japan now a major imperial power • Made an alliance with Great Britain • 1910: Annexes Korea

30. JAPANESE EMPIRE

31. MODERN ERA INTERACTIONS: RISE OF INTERNATIONAL DIPLOMACY 1750 - 1914

32. DIPLOMACY: BALANCE OF POWER & HEGEMONY • Century: Era of Western hegemony in all areas • Balance of Power dominates century • After Napoleon, great powers kept peace • Intervened in European affairs to maintain balance • Goals and Policies • No one power should dominate • No nation should be eliminated • No permanent ideologies threaten peace • Brokered conferences to decide touchy issues • International Organizations • Non-governmental Organizations new in history • Try to promote international accord • Establish cooperation • Red Cross • Established at end of Crimean War • Provide health care, relief following catastrophes • Olympics • Resurrected in 1896 • Healthy competition • International Laws • Diplomacy reaches highest level during period • Rules of Peace and War • Hague Conferences and Conventions • Agreements create standards, rules of war, peace • Neutrality was a key concept • Civilians were not to be touched

33. PRE-WAR ALLIANCES • Rival systems of alliance • Germany forms alliances • Bismarck attempts to isolate France • Until 1890, Germany had alliances with all except France • Obligated allies to come to one another's defense • France and Russia • Found themselves isolated, fearful of Germany • Formed Double Entente to end their isolation • The Triple Alliance • Germany, Austria-Hungary, Italy • Germany, Austria allied 1879 • Italy joined in 1882 (Triple Alliance) • Others Allied States • Ottoman Empire: German railroads, reforms of military • Bulgaria and Rumania fearful of Russia and Serbia • The Double and Later Triple Entente • France, Russia • Common enemy: Germany, common war plans • Worked together diplomatically • Why the United Kingdom joined • Due to rivalry with Germany over colonies and German construction of a navy • After German pre-war diplomacy seemed to lead to war • Shifting series of treaties ended with a military pact, 1914 • Japan had a separate alliance with Great Britain for Asia Pacific • War plans: each power poised and prepared for war • Military leaders devised inflexible military plans and timetables • France's Plan XVII focused on offensive maneuvers and attacks • Germany's Schlieffen plan: swift attack on France, defend against Russia

34. ALLIANCESc. 1914

35. MODERN ERA INTERACTIONS: TRADE AND COMMERCE 1750 - 1914

36. COMMERCIAL IDEOLOGIES IN 1750 • Mercantilism • Limited amount of wealth in the world • If one nation benefited, another suffered • Goal is to maximize nation’s portion of trade • Goal is to exclude competition from markets and monopolize wealth • Governments pass legislation to support domestic commerce • Trade incentives for local producers • Establish barriers to outside trade • Tariffs, excise taxes • Quotas, restrictions on imports • Infant industries support • Governments support colonization, imperialism • Colonization: find homes for excess population • Imperialism provides markets, resources for domestic industry • Foreign possessions bring glory, wealth to the nation • Almost every nation in the world subscribes to this theory • Free Trade • Wealth is not finite but can be created • To maximize wealth, allow people, industry to compete freely • Governments exist to protect competition, not guarantee success • UK, US (American colonies), Dutch are free traders • Adam Smith and the Wealth of Nation • Intellectual father of capitalism, free trade; ideas came to dominate US, Great Britain • By 1914 • UK was 1st in world, US was 3rd • English, American companies dominated world trade, finance, industry, capital • Even Germany, 2nd practiced the doctrine often

37. ECONOMIC EXCHANGES IN 1750 • Domestic Trade • Most commerce is internal, most markets are autarkic: self-sufficient • Great wealth is generated in trade but not as much as domestic production • Most workers, farmers generate wealth only sufficient for self consumption • International Trade • Conditions of Trade • Mercantilism predominates • International trade tends to be limited to cash crops, finished luxuries • Western Europe dominates most trade • Only Eastern Asia has the ability to rival, challenge Western Europe • Trade Markets • Western European exports and imports • Exports: finished products, finished luxuries • Imports: raw materials, minerals, primary crop luxuries • Eastern Europe, Southern Europe, Northern Europe, SW Asia • Imports: finished products, finished luxuries • Exports: minerals, primary products, grains • Americas including Caribbean, South Asia • Imports: finished products, finished luxuries • Exports: minerals, primary products, cash crops • Eastern Asia • Exports: finished products, finished luxuries, cloths, silks • Imports: minerals (silver), luxuries, luxury food • Note: most economies limit European influence, contacts • Africa • Imports: finished products, finished luxuries, cash crops • Exports: slaves, ivory, gold, cloves

38. ECONOMIC EXCHANGES IN 1914 • Saw the rise of international trade • Trade involved all types of products, goods for first time • Entire world involved: all continents, peoples effected • Some nations traded to exist: made their wealth off of trade • Very few nations produced finished goods for international market (core) • Most nations supplied world markets with raw materials (periphery) • Nations had begun to specialize in trade (we cannot produce everything) • Terms of Trade • Most items traded were finished goods, industrial products • Wealthy nations tended to trade with each other • Western Colonies, Latin America, all of Asia except Japan • Only accounted for a small part of trade • Generally exported primary products, imported finished products • Nations began negotiating trade agreements • The US and later UK came to favor open markets (markets open to all) • Most favored nation status was goal: partners traded as equals • Rise of international capital markets • Domestic profit needed to be invested, sometimes best opportunities abroad • Money invested abroad to reap benefits at home • Rise of international banks, investment opportunities • Rise of Multinational Corporations • Corporations had branches, outlets in other nations • Facilitated the transfer of technology, ideas, people between continents • International Economic Exchanges • Linked the world better than most ideologies • Was an instrument of revolutionary change to traditional societies • Was a threat to traditional societies • Rise of international communism, socialism as reactions to international wealth