Study Hall - How the Silver Trade Started

What was the Silver Trade a significant example of in the 16th century?

• The first example of a truly global trading system.

• A trade network limited to Europe and Asia.

• A system that primarily exchanged goods for paper money.

• The decline of exploration and diplomacy.

What problem did Chinese dynasties face with their paper money and bronze coins?

• They were too difficult to transport across long distances.

• The government printed too much, causing the currency to lose value.

• They were not accepted by any other countries for trade.

• The materials for making them became too scarce.

Why did the Ming Dynasty decide to require taxes to be paid in silver?

• Silver was easier to transport than paper money or bronze coins.

• The government wanted to reduce its reliance on foreign trade.

• Silver was more valuable and held its value better due to a limited supply.

• Paper money and bronze coins were too difficult to counterfeit.

What were Conquistadors like Pizarro and Cortés primarily interested in finding in the Americas?

• New trade routes to Asia.

• Precious metals like gold and silver.

• New lands for farming and settlement.

• Advanced technologies and scientific knowledge.

Where did the silver from Potosí in South America primarily travel to after reaching Seville, Spain, before finally arriving in Ming China?

• North America

• Africa and the Mughal Empire

• Australia

• The Ottoman Empire

What goods did China sell to the Spanish in exchange for silver?

• Linens and spices

• Gold and jewels

• Porcelain, silk, perfumes, and spices

• Tobacco and sugar

How did the Spanish Mita System differ from the original Incan Mita System?

• The Spanish system provided better working conditions and pay.

• The Incan system was a form of slavery, while the Spanish system was a labor tax.

• The Spanish system was a system of slavery, while the Incan system was a labor tax for public services.

• Both systems were identical in their treatment of workers.

What was a significant economic consequence for Spain in the 17th century, despite the influx of silver from the Americas?

• Spain experienced a period of unprecedented economic prosperity.

• Spain's economy came crashing down due to costly wars and poor leadership.

• Spain became the sole global trading power, eliminating all rivals.

• Spain invested all its silver in improving infrastructure and public services.

Impact: Europeans had previously lacked the luxury goods or natural resources necessary to truly become a central trading partner. _____helped shift Europe’s role from an outsider to a participant, a role that would continue to expand and grow.

• Silver

• Shipbuilding

• Silks and spices

• Native American culture