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The Age of Exploration 1500- 1800

The European exploration had a great impact in the world. In some areas, especially in the Americas and the Spice islands, itled to the destruction of local structures and the establishment of European colonies. In the case of Asia and Africa, the native cultures were left intact, but theystill had power over the trade. The European expansion affected Africa with a great increase of the slave trade., which was a key part of the European trade.This expansion produced a great increase in the European trade. This growth was one of the first steps in the development of the world economy. The nations in Europewere creating trading empires causing dramatic shifts in the economies and cultures of the Americas, Africa, and Asia.

Led by Portugal and Spain, European nationsestablished many trading posts and colonies in the Americas and in the East. The establishment of these colonies played a role in the theory of mercantilism thatdominated economic thought throughout the seventeenth century.
Mercantilists believed that the prosperity of a nation depends on a large supply of bullion, or gold andsilver. To bring in gold and silver payments, nations tried to have a favorable balance of trade. The balance of trade is the difference in value between what anation imports and what it exports over time. Imports are goods brought into a country; exports are goods shipped out of a country. When the balance is favorable, theexported goods are of greater value than the imported goods.

* Spanish and Portuguese colonies that were established in Latin America lasted more than 300 years.