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15 Cards in this Set

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(1500-1800) involved the economy’s subordination to the needs of the state, especially its need for power. Mercantilist nations strove for protectionism, a positive balance of trade, the accumulation of gold, and a global system in which colonies’ primary job was to supply natural resources to the factories of the home country.

- Government efforts to keep a positive trade balance
What was mercantilism
Prominent trading companies owed their success to state-chartered monopolies, to exclusive rights to territories. Trade involved mainly high value-to-volume products.
How did mercantilism work
British manufactures wanted to eliminate the country’s trade barriers. Allowing foreigner’s to sell their products to Britain promised several positive effects.
- British manufactures could lower their costs directly by importing cheaper raw materials, and indirectly because cheaper imported food would allow factory owners to pay lowers wages without reducing workers’ standard of living.
- At the same time, if foreigners earned more by selling to Britain, they would be able to buy more British goods.
- British industrialist also realized that if foreigners could buy all the manufactures they needed from low-cost British producers, they would have less need to develop their own industries.
What were the key factors behind the shift from mercantilism to free trade
The ________ is a monetary system in which the standard economic unit of account is a fixed weight of gold
What was the “Gold Standard"
Populists. By the 1890s in the United States, a reaction against the gold standard had emerged centered in the Southwest and Great Plains. Many farmers began to view the scarcity of gold, especially outside the banking centers of the East, as an instrument to allow Eastern bankers to instigate credit squeezes that would force western farmers into widespread debt, leading to a consolidation of western property into the hands of the centralized banks. The formation of the Populist Party in Lampasas, Texas specifically centered around the use of "easy money" that was not backed by gold and which could flow more easily through regional and rural banks, providing farmers access to needed credit.
In the United States, who opposed the gold standard and why?
- 1900 Gold Standard Act reaffirmed the commitment to a gold. The Gold Standard Act allowed for the creation of banks to do foreign business, and casually reaffirmed the Gold Standard Act of 1900.
- By 1898 gold production had increased to dramatically, and inflation soon followed
- Prosperity came back in 1898 with foreign crop failure and great demand for US goods
How was the gold standard “reaffirmed” after 1896?
Countries that joined the golden age global economy remade themselves in line with their newfound positions in the world market. Each region specialized in what it did best.
- Britain managed investments, ran the world’s banking and trading systems, and supervised and insured world shipping and communications.
- Germany produced iron and steel, chemicals and heavy equipment for railroads, mines, plantations and shipping lines.
- Argentina, South Africa, and Australia used British Capital and German machinery to open new farms and mines and sent the minerals back to Britain as interests in its investments
During the late 19th century, how did most countries insert themselves into the world economy? Did they diversify their economies or specialize
In sum, the process of English cotton textile industrialization had negative effects on India as a commercial partner and eventual colony. India lost its major export markets for cotton cloth to English industry and its export-oriented products; Indian commercial capitalism was stunted, while England’s machine-spun yarn and cloth were protected in Indian markets. Indian hand-produced coarse cotton cloth was restricted to local trade, although the finest specialties continued to be prized by elites throughout the country and sometimes exported; both spinners and weavers were pressed into agricultural labor to survive. These outcomes were shaped by India’s previous history, especially the ways in which its specialized and subdivided productive system rigidified as it was forced into dependency, first by the East India Company’s commercial capitalist trading system and, later, by British colonial policy. Indian family relations, which included both pressure for cooperation and potential for conflict, changed little. Patriarchal control of children’s lives continued unabated, and adult gender relations continued to be structured in ways disadvantageous to females, given their weak position in their birth family, youthful marriage, dependence on the good will of their husband and his family, and lack of rights as widows.

1810-1860, was one during which India lost much of its domestic textile market to Britain. This result can be explained by the combined influence of relatively rapid factory-based productivity advance in Britain and by increased world market integration,
the latter driven by declining transport costs between the two trading
partners, and to a free trade commitment for India on the part of her colonial
rulers. The terms of trade moved to favour India and hurt her import
competing manufacturing sector. The effects of the economic difficulties of
the 18th century were pretty much over, and the induced decline in Indian
grain productivity had ceased.
How did India lose its technological and commercial advantage in cotton textiles
England faced increasing pressure to produce more manufactured goods due to the 18th century population explosion -- England's population nearly doubled over the course of the century. And the industry most important in the rise of England as an industrial nation was cotton textiles. No other industry can be said to have advanced so far so quickly. Although the putting-out system (cottage industry) was fairly well-developed across the Continent, it was fully developed in England. A merchant would deliver raw cotton at a household. The cotton would be cleaned and then spun into yarn or thread. After a period of time, the merchant would return, pick up the yarn and drop off more raw cotton. The merchant would then take the spun yarn to another household where it was woven into cloth. The system worked fairly well except under the growing pressure of demand, the putting-out system could no longer keep up. Through Free Trade? Some argue that this push for free trade was merely because of Britain’s economic position and was unconnected with any true philosophic dedication to free trade, Britain could dominate its economy through free trade alone without having to resort to formal rule or mercantilism.
How did England gain its advantages in cotton textiles
The _________ is a logical mechanism created by David Hume which dispelled the Mercantilist (1700-1776) notion that a nation can have a continuously favorable balance of trade.
Price-specie flow mechanism
The Wealth of Nations, easily the best known of Smith's writings, is a mixture of descriptions, historical accounts, and recommendations.

The Wealth of Nations, made specialization-the division of labor-the centerpeice of his argument. He argued against the mercantilists, that self-sufficency was foolish and that a greater division of labor made societies wealthier.

The wealth of a nation, Smith insists, is to be gauged by the number and variety of consumable goods it can command. Free trade is essential for the maximum development of wealth for any nation because through such trade a variety of goods becomes possible.
Adam Smith, Wealth of Nations
was a relatively short-lived political party in the United States in the late 19th century. It flourished particularly among western farmers, based largely on its opposition to the gold standard. Although the party did not remain a lasting feature of the political landscape, many of its positions have become adopted over the course of the following decades. The crux of the party's platform — the democratization of the nation's economic/finance system — was not implemented, however. The very term "populist" has since become a generic term in U.S. politics for politics which appeals to the common person in opposition to established interests. _______ Party (originally the People's Party) was established in 1891 when the Knights of Labor and Farmers' Alliance joined forces. The party advocated the public ownership of the railroads, steamship lines and telephone and telegraph systems. It also supported the free and unlimited coinage of silver, the abolition of national banks, a system of graduated income tax and the direct election of United States Senators.
is calico cloth printed with flowers and other devices in different colours, originally from India. Chintz was originally a painted or stained calico produced in India and popular for bed covers, quilts, and draperies, popular in Europe in 17th century and 18th century, where it was imported and later produced. Europeans at first produced reproductions of Indian designs, and later added original patterns. A well-known make was toile de Jouy, which was manufactured in Jouy, France between 1700 to 1843.
______ was an English inventor and a manufacturing pioneer. He developed a mechanical machine for spinning cotton, a process that was traditionally done in small homes and farms (see Industrial Revolution). He set up a water powered spinning factory in 1771 and used steam power to set up another factory in 1790. He was not liked by many traditional spinners who feared that their weaving skills would become unnessecary with the advent of the spinning frame. The new factories meant that cotton could now be spun at a very rapid rate, and this helped to jump start other innovations in the field of textiles.

(1732-1792) invented another kind of spinning device, the water frame
Richard Arkwright
Dramatic changes in the social and economic structure took place as inventions and technological innovations created the factory system of large-scale machine production and greater economic specialization, and as the laboring population, formerly employed predominantly in agriculture (in which production had also increased as a result of technological improvements), increasingly gathered in great urban factory centers. The same process occurred at later times and in changed tempo in other countries. Richard Arkwright's water frame (1769), Samuel Crompton's mule (1779), which combined the features of the jenny and the frame, and Edmund Cartwright's power loom (patented 1783) facilitated a tremendous increase in output. The presence of large quantities of coal and iron in close proximity in Britain was a decisive factor in its rapid industrial growth.
What were the “dynamics for vast social and economic change in England and the United States, as well as Continental Europe” set in motion by Richard Arkwright and cotton textile machinery?