Ap Euro

Analyze the changes in the European economy from about 1450 to 1700 brought about by the voyages of exploration and colonization.

European economy had several changes after the age of discovery. In Spain, there was an inflation of the price, which declined its economy. In Netherlands, they established West and East Indies Company, which improved Netherlands' economy. In Portugal, the economy improved because of flow of gold into the Portugal.

Spanish explorer found gold mines in Zactecas and Guanajuanto and Potosi. As a result, huge amount of gold and silver poured in to Spain. At the same time, there was an increase in population, and there was a huge demand for food. Spanish colonies also demanded for food, so the demand for food increased even more. Consequently, Spanish product could not compete in international market. Then we got inflation and a decline in Spanish economy. Price revolution stabilized Spanish economy, which was lead by peasants.

Netherlands established west and East Indies Company, which was a stock company. Furthermore, you could spend all your money on ship which goes to the new world, and brings back you back stuff that worth a lot in Europe. Most people share a stock, so they would not to lose their money. Because of this company Netherlands' economy improved.

Portugal explores went to south of America, and they discovered gold and silver in there. They used Brazilian labor to work for them in mines and many of the Brazilian died from unhealthy atmosphere and diseases. Portuguese explores went to Lisbon and they collected spices and Indian clothes. In addition, they had a battle with in Indians, and they captured Lisbon. So Lisbon become entrance port for Asians goods into Europe.