1400-1800 (mercantilism/imperialism):

• The regional political economies during time period differed in terms of social, political and economic organization. (heterogeneity). The heterogeneity created interactions ranging from free trade war and slavery. These interactions had long-lasting effects
• Economic activity was local around 1400 (agriculture)à a market town with an agricultural periphery of about 30 km. but also thousand of years of old intercontinental trade routes for luxury goods from Asia. By land Europeans got ità from China via central Asia through the Mediterranean. By seaà through South-east Asia, the Indian ocean and then into the Mediterranean either through the Persian Gulf or the Red Sea.
• Two main trends: increased economic activity and integration across Europe (new trade patterns and consolidation of European political authority into rival states (emergence of nation states)
• Europe, economy trade in the 14^th-15^th centuries. Two economic centres linked through trade. South à Venice, Pisa, Genoa (wealth mostly through luxury goods trade in the Mediterranean. Silk from China, ivory from Africa and spices from India. Commercial rivalry among Italian city states. North à present-day Belgium + Netherlands, North and Baltic Seas areas. Mostly non-luxury trade like wine and the textile industry, stock market and the Hanseatic League. This trade generally increased wealth in many parts of Europe, but there was an imbalance in trade. Europeans bough expensive luxury goods from China, India, Middle East and Africa. But they often had to pay for them with silver and gold, Europeans had few goods that their trade partners in other regions would want. Europeans wanted these luxury goods, but their gold and silver was limited
• Innovations: finance à development of accepted forms of money, banking and credit. Also joint-stock companies. Politicsà sovereign territorial states replaced city dates and merchant leagues. Advantages: concentrated military and geographic state authority, easier to mobilize resources, national markets for commerce, standardized weights, coins, common laws, economic and military interdependence. But also economic and politically rivalry among states
• Europe: 15^th -18^th century. Europeans needed capital to finance the wars amongst themselves and pay for luxury and trade. What did they doà find new sources of wealth, take some by fore, develop new products to trade
• Latin/south America in the 15^th century. Wealth extraction: the Spanish shipped silver, the Portuguese had sugar plantations and the Dutch/French/English had rivalry on this. Consequences: reorientated local economy from agricultural to mining, forced labour from the local populations and African slaves. Left behind institutions that thwarted long term economic growth, hierarchy, inequality through a landed elite and landless workers. Major success factors: guns, Germs and steel
• North America: Portugal+ Spain’s maritime power declined around 1600, the French British and Dutch rose power. Portuguese, French and British; fish and beavers in Newfoundland and new England for trade. European settlers in Canada and the US, genocidal warfare and economic subjugation of native populations.
• Africa: Difference with the South/Latin American experience. Initially, limited to the coast of sub-Saharan Africa and southern Africa. Portuguese were first. Large-scale colonization delayed until late 1800s due to Malaria. Extraction of wealth: slaves support the mines and plantations in the America. Joint operations with local Africans, Europeans paid for slaves with gun, textiles, stones and rum. Consequences: ethnic cleavages, civil wars, genocides persisting. Contributed to economic growth in Europeà triangular trade. Buying slaves in Africa, ship to America, take for example steel and cotton.
• Asia: Asian Empires were larger, more populous and more productive. Europeans, confined to trading posts and seaports, wanted Asian luzury goods but did not have many goods to offer or Asians and frequently faced military defeat. However, Britishc colonized Indiaà start producing export Crops such as opium. British could not colonize China. Consequences: British introduced English law in India, flooded Indian markets with machine-produced cotton. Also creation of corporations

1800-1945 (liberalism and imperialism):

• Mercantilism was costly, prosperity grew since the mid 1800s
• Industrial revolution mid 1700-1870s (happened in Britain, later US and Germanyà chemicals and electricity): introduction of mechanized production, introductions of new energy sources to power production. Also reorganization of labour force into factories. Key inventions: steam and spinning wheel
• why in Britainà (1) growth in science and technology dues to the separation between church an state.  (2)Liberalism (emphasis on free markets, reward to capitalist class and free trade. Also the (3)geographic location and naval power (easier to import and export products and access to markets). Other were more focusses on the protectionism, later on they did which led to the second industrial revolution
• Pax Britannica (1815-1914)à British peace, mostly guided by liberal principles. Warning: a European-centred international system view (so peace and wealth for whom?). The rise of the British industrial and military power led to a particular form of international system. It started with Napoleon’s defeat and ended with the outbreak of the first WW. Britain had an diplomatic influence contributed to economic openness and relative peace. Industrial revolution altered interestsà exchange/trade replaces mercantilism. Economic integration increases. British Empire ruled the world using: Gold standard, free trade and balance of power.
• Gold standards: Problem: exchanging currencies and balance of payments (when a country buys more than it sells (BOP deficit). Solution: countries fix their currencies to gold. Countries declared what their currency is worth in gold and currencies can change their value in relationship to each other while staying fixed to gold. Created stability and predictability in the international monetary system. But created automatic deflation which created unemployment.
• Free trade: Britain repealed the Corn laws. In 1846. Protected aristocrats and farmers from imported corn. Also theory of comparative advantage. But not all stated believed in free trade (US and Germany). Countries would trade until they stole technology and then protect their own industry
• Balance of power: less conflicts and fewer wars. Sates would shift alliances to balance the growing power of any particular state. The British navy + wealth were the primary reasons for its balancing role. But there was a new wave of imperialism (colonial latecomers) like Germany Italy and US)
• Renewed imperialism: Europeans extended their dominance over an additional 1?6^th of the world’s territory. Dutch went for example to Indonesia. Spain lost territory (1878-1913). Italy, Belgium and Germany started to join. Japan seized Taiwan and Korea.
• Why do we have renewed imperialism: Marxist: because of under-consumption in Western states, industrialists and bankers pursue overseas markets. According to Lenin, this was an inevitable feature of Capitalism and would leas to revolution in the colonized world . nationalist: because of military and strategic competition among European states, colonies show power
• Ending: changing in balance of power, Austria-Hungary and Ottoman Empires were weaking and a rise of Germany. The pas Britannica order ended. The world wars massive shocks to the international economy, a retreat from economical policies.

Interwar period:

• End of global cooperation
• Weakened Europe, devastation, war reparations, new forms of states
• Also Economic depression, uncertain and unstable international economic order, prioritization of domestic markets. Removed Fold standards etc.

1949-1990:

• Cold warà US rose as the Western hegemon (capitalism and democracy, NATO, OAS, SEATIO, Bretton woods institutions and bank for reconstruction and development). USSR as Easter hegemon (communist, one-party system, Warsaw pact and Comecon). Britain had no longer power.
• Post cold war: after Opec price shockà embracing liberal ideas, more cross border trade. The world trade organization was established to promote trade, liberalization and economic globalization. There was a huge surge in regional trade agreements.