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Global Trade Networks

Global Trade Networks

Global trade networks create cultural and political connections between countries from all over the world and promote the development of higher standards of living, wealth, job opportunities, and more. In the Middle Ages, Europe was transitioning from a medieval agricultural economy to one based on interregional trade, in turn helping to develop large urban centers. Because of this process, a commercial revolution began that would completely change medieval society!

Global Trade Networks Meaning

The definition of global trade is the exchange of products between international borders. Also known as "international trade", global trade works through a system of supply chains between the countries that source raw materials. Such materials manufacture the raw materials and later the consumer nation. The products involved in international trade can be identified as either imports or exports; imports are products received by the local nation, while exports are products sold to a foreign nation.

During the Middle Ages, connections between Europe, Africa, Arabia, and Asia promoted the trading of silk, spices, animal skins, ivory, gold, and precious gemstones, as well as encouraging the exchanges of knowledge, religion, and languages!

Global Trade Networks Map of Medieval Trade Routes StudySmarterFig. 1 - Map of Medieval Trade Routes

While making civilizations extremely rich, global trade also brought many negative consequences. For example, differences in religious views caused the Crusades between Christians and Muslims from 1096 to 1291 and the outbreak of the Black Plague from 1346 to 1353, both amounting to a massive loss of life.

Global Trade Networks Importance

International trade is vital to reducing poverty, as it can create various job opportunities. Countries participating in global trade often grow faster and rapidly improve their productivity and innovation. This is because global trade leads to the developing of new industries to meet other countries' demands.

Global trade can also lead to developing and establishing peace between countries. Trade can create understanding, cooperation, and cordial relationships among multiple countries because when people come into contact with each other, the commercial mixing between them promotes the exchange of culture and ideas.

Indian Ocean trade routes were incredibly peaceful before the arrival of Europeans in the late 15th and early 16th centuries. Port cities were tolerant of different religions and languages and could function amongst each other without the routes being controlled by a singular nation. This enabled the growth of healthy business relationships and generated wealth for all those involved.

Global Trade Networks Austronesian maritime trade network in the Indian Ocean StudySmarterFig. 2 Austronesian maritime trade network in the Indian Ocean

The Beginning of Global Trade Networks & Effects

In the early Middle Ages, trade in Europe continued (to a certain extent) as it had under the Roman Empire, shipping products from one end of the Mediterranean to the other through its branching rivers and waterways. The Mediterranean Sea has been essential for exchanging goods, ideas, and people since the 3rd millennium BCE! Using the sea-based routes, it connected Southern Europe, the Levant, North Africa, the Atlantic Ocean (to bring goods around western Europe and into the north), and Turkey in the East, which connected trade to Asia.

Referred to as the “Mediterranean Sea Trade Complex”, it allowed for the merging and diffusing world cultures, unlike the Silk Roads, which indirectly excluded Africa and Europe. From ancient and medieval times, merchants of the Mediterranean Sea unknowingly lead one of the most critical moments of globalization in history!

Medieval Trade Fairs

By 1200, as Europe was moving from agricultural economies into interregional trade, it gradually became impossible to upkeep the previous economic structure (feudalism). Gangs and bandits consistently attacked small, unguarded farms and merchant caravans, aiding in the decline of urban and trade life.

The Crusades then reintroduced spices, silk, and perfume into European society, allowing them to use the spices to preserve and flavor their foods. This, along with growing population pressure and agricultural output, led to the revitalization of trade in Western Europe.

By the end of the 13th century, the increase in trade and manufacturing led to a sharp urban population growth, evident in the establishment of trading & manufacturing centers in Northern Italy and Northwest France.

The implementation of more sea-based trade (specifically in the Baltic and North Seas) led to the “Hanseatic League,” where merchants would establish Trade Fairs along the trade routes. Other business owners would take advantage of these fairs and build inns, stables, and banking institutions for those who attended. New, bustling cities flowered as a result of this economic activity. Most of these cities would boast independent status, as leaders knew it was an advantage to allow significant amounts of freedom to its inhabitants.

Global Trade Networks Main trading routes of the Hanseatic League in northern Europe StudySmarterFig. 3 - Main trading routes of the Hanseatic League in northern Europe

This new environment was based solely on talent and initiative, and success was not based on what family you were born into. This structure began to pull apart traditional medieval society and create a flourishing middle class. The political philosophy of Democratic Capitalism would continue to reorder European society and create an environment in which individual talent and initiative could thrive like never before.

The Hanseatic League was a German commercial and defensive group of merchant guilds and market towns in Central and Northern Europe. It was formed to protect mutual interests, such as preventing piracy and banditry, and created a standard legal system that governed merchants and their goods.

Trade Fairs could be as expansive as a small city, with shops built in rows and streets. Shops were named either after the region in which their goods came from or the name of the goods they were selling so that it was easy for customers to find exactly what they wanted.

Global Trade Network Examples

The Silk Roads

Lasting from the 1st century BC to the 5th century BC and the 13th-14th centuries AD, the Silk Roads transported luxury goods from China into empires of the Eurasian continent. This was the first time trade had become global rather than local or regional.

The Silk Roads carried silk from China, glass from Egypt, Saffron from Persia, and Sandalwood from India (to name a few) and united many empires through these exchanges. When the empires protected the trade routes, trade and economies flourished. When the empires collapsed, so did the trade routes.

Global Trade Networks The Spread of Manichaeism along the Silk Road StudySmarterFig. 4 The Spread of Manichaeism along the Silk Road

After centuries of trade, the Silk Roads closed due to Islamic empires (such as the Ottoman) cutting off trade with the West. However, the Silk Roads were reborn in the 13th-14th centuries with the rise of a new empire; the Mongols.

The Spice Routes

Active from the 7th-15th centuries, Islamic merchants are responsible for the next chapter of global trade. By the early 9th century, Muslim merchants dominated the Mediterranean and Indian Ocean trade and could later be found as far East as Indonesia and as far West as Moorish Spain.

Global Trade Networks Islamic Merchants illustration StudySmarterFig. 5 Islamic Merchants illustration

The main focus of trade was no longer silk but now spices. Unlike silk, spices were traded mainly by sea rather than by land, as the most desired spices were from the Maluku Islands of Indonesia. However, like silk, spices were considered a luxury goods and not traded in high volumes.

Though this is still not technically globalized trade, it created solid routes between the East and West, the world they knew it to be at the time.

Indian Ocean Trade Routes

The height of the Indian Ocean trade was within the medieval era of 1200-1450 and connected Asia, Southeast Asia, India, Arabia, and the East Coast of Africa. Primarily dominated by Islamic merchants, Indian Ocean trade routes transported ivory, spices, porcelain, timber, gemstones, and multiple cultures and languages.

Global Trade Networks Ships on the Red Sea StudySmarterFig. 6 Ships on the Red Sea

Until the arrival of the Portuguese in 1498 under the command of Vasco de Gama, Indian Ocean trade had thrived under the protection of merchant guilds (organizations centered around commerce). However, with the implementation of Portuguese power and the Dutch and English East India Companies, later on, Europe was forcefully brought into the Indian Ocean trade scene.

Advantages of the Global Trade Network

  • People can exchange products, cultures, and knowledge through global trade.
  • Nations can generate income from their products through global trade.
  • Global trade promotes peace and understanding between nations.
  • Global trade allows access to products that are not indigenous to every part of the world, allowing people to diversify their available goods and services.

Disadvantages of the Global Trade Network

  • Competitiveness, jealousy, and cultural differences in global trade can lead to violence and misunderstandings between nations.
  • In the past, global trade has occasionally led to the spread of disease and sickness.
  • Global trade can enhance the exploitation of workers due to high demands.

Global Trade Networks - Key takeaways

  • Also known as "International Trade," Global Trade works through a system between the countries that source raw materials, the ones that manufacture the raw materials, and finally, the consumer nation.
  • Global trade networks promote cultural and political connections, can increase wealth and job opportunities, and can supply products to places that it is not indigenous.
  • By 1200, Europe was moving from agricultural economies into interregional trade.
  • By the end of the 13th century, the increase in trade and manufacturing led to sharp urban population growth and a flourishing middle class. This was the first time success depended on talent and initiative, not what family you were born into.

Frequently Asked Questions about Global Trade Networks

Trade is the transferring of goods and services from one entity or person to another. Trade networks consist of a complex of enterprises that participate in the sale of goods and services to the population, as well as ensure the supply of said goods and services to trading organizations. 

The advantages of global trade networks were 

  1. The discovery of new goods, products, people, and cultures. 
  2. The number of jobs that were available expanded.
  3. It promoted international and domestic investments. 
  4. It could often improve the quality of what was produced, as external forces often demanded high standards. 

The Silk Roads, the Spice Routes, and the Age of Discovery could all apply to the foundations of global trade networks. Though not considered by historians to be the true beginning of completely global trade, the people of these time periods traded with the “full globe” as they knew it to be. The official beginning of global trade is considered to be during the First Wave of Globalization from the 19th century – 1914, accompanying the era of the First Industrial Revolution. 

The history of global trade (with the globe as people knew it) has lasted for approximately 8,000 years. The desire for goods from distant lands has always driven the development of complex, international trade networks. The official starting point of global trade is during the First Wave of Globalization & First Industrial Revolution of the 19th century – 1914. 

Final Global Trade Networks Quiz

Question

Who founded the Mongol Empire?

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Answer

Genghis Khan

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Question

What was the main Mongolian trade route network called?

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Answer

Silk Road

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Question

Who was the most famous merchant to use the Mongolian land routes?

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Answer

Marco Polo

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What type of goods did merchants sell and buy along the Mongolian trade network?

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Answer

Merchants bought and sold gunpowder, jewelry, spices, paper, porcelain, and other types of goods.

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What was the downside of the Mongolian land routes?

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Answer

The deadly Bubonic plague spread along the trade routes from Asia to Europe.

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What was the shorter part of the Silk Road called?

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Answer

Eurasian Steppe Route

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When did the Silk Road stop operating?

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Answer

1453

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Question

TRUE OR FALSE: The Mongol rulers of China were called the Yuan Dynasty.

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Answer

True

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Question

What did the Chinese introduce to Europe?

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Answer

Gunpowder

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Question

What was the northwestern part of the Mongol-controlled lands called?

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Answer

Golden Horde

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Question

What was the Old Salt Route?

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Answer

A trade road stretching 110 km from 

Lüneburg to Lübeck. 


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How did the Hanseatic League form?

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Answer

The Old Salt Route grew into a confederation of market towns, traders and merchants, which developed into the Hanseatic League.

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Did the Hanseatic League appoint their own political leadership?


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Answer

Yes, they acted separately from the rest of Germany.

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Question

How important was salt?

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Answer

Salt was so valuable it was used as payment.

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What was the name given to salt during this time?

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Answer

"white gold"

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What King is mentioned in the first documentation of the Old Salt Route?

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Answer

King Otto I The Great, East Frankish King and Holy Roman Emperor in the 900s AD

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What is the OId Salt Route's purpose today?

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Answer

The route acts as a bike trail, and is popular with tourists. 

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Question

What food was salt used to make that was hugely important in medieval diets?

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Answer

Salt fish is a major part of the diet due to its preservation and travel friendliness.

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Question

Why is the Old Salt Route an important part of the history of Northern Germany?

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Answer

The Old Salt Route led to the formation of the Hanseatic League and allowed for control over maritime trade in the Baltic Sea. 

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Do portions of the Old Salt Route still exist?

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Answer

Yes, portions exist and are used for bike trails and prized for their historic value.

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Question

What is a global commodity?

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Answer

A good which is in demand worldwide.

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Question

Vasco da Gama was a                    sailor who went to India.

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Answer

Portuguese.

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Question

Which global commodities required refining?

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Answer

Sugar.

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Question

Why were spices so important to medieval Europe?


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Answer

Spices were not only used in cooking, they were medicinal. 

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Question

How did control of global commodities create political power?


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Answer

Controlling the transport or production of a global commodity allows the producer or transporter to direct distribution of crucial goods. 

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Question

                             allowed the global commodity chain to reach the New World.

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Answer

The Age of Discovery.

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What was the centre of European trade before the Age of Discovery?

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Answer

Venice.

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Sugar was consumed by most Europeans during medieval times.

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Answer

False.

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                         Africans became slaves in the New World between 1525 and 1866.

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Answer

13 million.

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Which country was the biggest importer of silver?

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Answer

China.

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The             Road was a system of ancient trade routes.

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Answer

Silk.

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What is the name of the strategic series of trade routes that connected China to Europe, the Middle East, and beyond?

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Answer

The Silk Road 

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True or False: The Silk Road encompasses approximately 4,000 miles of trade routes.

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Answer

True

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What happened when merchants converged in the trade cities that sprang up along the Silk Road?

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Answer

They were able to sell their goods to other merchants. 

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True or false: Exchange of ideas was attractive to scholars, philosophers, theologians and lured them to trade cities. 

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True

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True or False: Historians view 130 BCE as the year the Silk Road opened for trade.


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True 

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When did usage of the Silk Road come to an end? 

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1450

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True or False: Travelers began to abandon the Silk Road  due to the dangerous nature of traveling it.



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True

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True or False: The Silk Road was revived in the 17th and 18th centuries by the Mongol Empire. 


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Answer

True 

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Question

_______ means pertaining to an empire.

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Answer

Imperial

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Question

_______ ________ means a time of peace and prosperity.

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Answer

Golden Age

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Question

Define merchant guild.

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Answer

A medieval organization centered on commerce. 

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Question

What occupation and related religious affiliation dominated Indian Ocean Trade? 

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Answer

Islamic Merchants 

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Question

What is another term commonly used for the Indian Ocean Trade? 

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Answer

"Maritime Silk Road" 

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Question

During what period did the Indian Ocean Trade reach its Medieval Era height? 

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Answer

1200-1450 CE

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Question

What is the name of the Strait in Indonesia that directed passage between the Indian Ocean and the South China Sea? 

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Answer

Strait of Malacca 

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Question

Which of the following allowed for the rise and fall of the Srivijaya Empire?

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Answer

Competition in controlling the Strait of Malacca.

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Question

Which pairing of monsoon winds and cardinal directions is correct?

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Answer

Summer monsoon, winds flow Northeast; Winer monsoon, winds flow Southwest. 

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Question

From 1200-1450 CE, which religion was NOT a major player in Indian Ocean Trade? 

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Answer

Christianity 

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Question

What was another name for the East African coast during the Indian Ocean Trade from 1200-1450? 

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Answer

The Swahili Coast 

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