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What Role Did Trade Routes Established During the Age of Exploration Play in Economic Development?

The Age of Exploration: How It Changed Trade Around the World

The Age of Exploration happened between the late 1400s and the 1700s. During this time, trade routes were formed that changed the way countries interacted with each other. These new paths connected Europe, Africa, Asia, and the Americas. This connection helped share goods, cultures, and ideas in new and exciting ways.

  1. More Products to Trade: With this new exploration, high-demand products like spices, silk, and precious metals became available. Portuguese and Spanish explorers were eager to find direct paths to Asia. This led to the creation of the Spice Trade. The high demand for spices helped European countries grow richer and also boosted local economies in Asia.

  2. Colonies and Their Economies: Colonies played a big role by providing raw materials for industries in Europe. They also served as places to sell manufactured goods from Europe. One famous trading system was the triangular trade route. In this system, European ships would take textiles and rum to Africa. There, they exchanged these goods for enslaved people, who were then brought to the Americas. In the Americas, these enslaved people worked on farms growing tobacco and sugar. This cycle helped European countries to grow economically.

  3. New Ways to Handle Money: As trade increased, new financial tools were created, like joint-stock companies and banks. These made it easier for people to invest money and share risks. A great example is the British East India Company. This company showed how private businesses could help manage and benefit from trade around the world.

In short, the trade routes created during the Age of Exploration were very important. They changed economies all around the globe and helped connect different parts of the world, setting the stage for the modern economy we know today.

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What Role Did Trade Routes Established During the Age of Exploration Play in Economic Development?

The Age of Exploration: How It Changed Trade Around the World

The Age of Exploration happened between the late 1400s and the 1700s. During this time, trade routes were formed that changed the way countries interacted with each other. These new paths connected Europe, Africa, Asia, and the Americas. This connection helped share goods, cultures, and ideas in new and exciting ways.

  1. More Products to Trade: With this new exploration, high-demand products like spices, silk, and precious metals became available. Portuguese and Spanish explorers were eager to find direct paths to Asia. This led to the creation of the Spice Trade. The high demand for spices helped European countries grow richer and also boosted local economies in Asia.

  2. Colonies and Their Economies: Colonies played a big role by providing raw materials for industries in Europe. They also served as places to sell manufactured goods from Europe. One famous trading system was the triangular trade route. In this system, European ships would take textiles and rum to Africa. There, they exchanged these goods for enslaved people, who were then brought to the Americas. In the Americas, these enslaved people worked on farms growing tobacco and sugar. This cycle helped European countries to grow economically.

  3. New Ways to Handle Money: As trade increased, new financial tools were created, like joint-stock companies and banks. These made it easier for people to invest money and share risks. A great example is the British East India Company. This company showed how private businesses could help manage and benefit from trade around the world.

In short, the trade routes created during the Age of Exploration were very important. They changed economies all around the globe and helped connect different parts of the world, setting the stage for the modern economy we know today.

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