1 00:00:01,389 --> 00:00:13,390 So continue with the economy, we are going to talk about trade. Remember it is the second most important economic activity in the 18th century and it is related with colonial trade. 2 00:00:13,390 --> 00:00:21,390 So let's begin with this. As you see, as you can read, trade suffered an important development in the international and national level. 3 00:00:21,390 --> 00:00:26,449 What does it mean international and national level? It means that trade is 4 00:00:26,449 --> 00:00:32,509 going to be developed not only due to the colonial trade, it means in an 5 00:00:32,509 --> 00:00:37,890 international level between countries, but also in the national level, it means 6 00:00:37,890 --> 00:00:43,630 inside the country. So we are going to talk first about the domestic trade, 7 00:00:43,630 --> 00:00:48,890 that means the trade in the national level. So let's talk about this 8 00:00:48,890 --> 00:00:53,130 domestic trade in the national level. It is going to be characterized by two 9 00:00:53,130 --> 00:00:59,030 main characteristics. The first one is what we call domestic system. We saw this 10 00:00:59,030 --> 00:01:04,549 domestic system during the Middle Ages and we saw this 11 00:01:04,549 --> 00:01:10,430 during the modern age. It means in the 15th, 16th and 17th 12 00:01:10,430 --> 00:01:16,310 century and also this domestic system is going to survive during the 18th century. 13 00:01:16,310 --> 00:01:17,989 What is the domestic system? 14 00:01:18,349 --> 00:01:26,269 Okay, the domestic system is basically to produce manufactured products at home. 15 00:01:27,049 --> 00:01:27,930 Imagine this. 16 00:01:28,129 --> 00:01:29,250 Okay, let's understand this. 17 00:01:29,609 --> 00:01:35,310 Imagine you are a part of the bourgeoisie, you are a merchant, you have the raw material, 18 00:01:35,450 --> 00:01:38,790 you have the wool or the cotton in order to produce a t-shirt. 19 00:01:39,230 --> 00:01:43,810 But the problem is you have no time, okay, to produce the t-shirt. 20 00:01:43,810 --> 00:01:46,569 and what you want to sell, of course, is the t-shirt. 21 00:01:47,569 --> 00:01:49,109 Okay, so what you are going to do is, 22 00:01:49,209 --> 00:01:51,909 okay, I'm going to go to a village 23 00:01:51,909 --> 00:01:54,450 or a small town in the countryside 24 00:01:54,450 --> 00:01:57,530 and I'm going to give the instrument, 25 00:01:57,670 --> 00:01:59,609 it means the tools, the weapons, 26 00:01:59,870 --> 00:02:01,950 to the peasants 27 00:02:01,950 --> 00:02:06,329 and also I'm going to give them the wool or the cotton 28 00:02:06,329 --> 00:02:07,829 in order to produce the t-shirt. 29 00:02:08,770 --> 00:02:10,789 These peasants, what they are going to do 30 00:02:10,789 --> 00:02:13,469 is to produce the t-shirts. 31 00:02:13,810 --> 00:02:20,030 after a while a month two months etc whatever okay it doesn't matter the 32 00:02:20,030 --> 00:02:26,430 time the bourgeois or the merchant is going to come back to the village and 33 00:02:26,430 --> 00:02:32,969 it's going to ask for the t-shirts of course the peasants during their free 34 00:02:32,969 --> 00:02:38,729 time they have produced I don't know a certain amount of t-shirts so what they 35 00:02:38,729 --> 00:02:44,669 are going to do is they are going to give the t-shirts to the merchant 36 00:02:44,669 --> 00:02:52,490 and the merchant is going to pay to these people in exchange. So the idea 37 00:02:52,490 --> 00:02:57,330 of the merchant is okay I have the raw materials and I have the tools in 38 00:02:57,330 --> 00:03:02,069 order to produce the products I want to sell but what I need is people to 39 00:03:02,069 --> 00:03:07,409 produce these products. Who is going to be willing to produce these t-shirts? 40 00:03:07,409 --> 00:03:13,090 of course the peasants that they are poor and they are going to have free time and in this 41 00:03:13,090 --> 00:03:20,930 in this free time they can produce the t-shirts in order to gain obtain earn more money okay in 42 00:03:20,930 --> 00:03:27,409 order to survive remember they are poor so this is a great chance for these peasants in order to 43 00:03:27,409 --> 00:03:34,530 obtain some money so you can see this process in this picture okay so that's the idea they are 44 00:03:34,530 --> 00:03:39,330 these are the peasants they are producing the t-shirts for example in the house and this is 45 00:03:39,330 --> 00:03:47,169 the idea the merchant with the cotton arrives to a village gives the cotton and the and the tools 46 00:03:47,169 --> 00:03:57,090 to the peasants and after a while they he come back to the village and go to the city in order 47 00:03:57,090 --> 00:04:03,729 to sell these finished clothes it means the t-shirts or whatever they have produced so this 48 00:04:03,729 --> 00:04:10,389 is one of the characteristics of the trading in the 16th 17th and 18th century 49 00:04:10,389 --> 00:04:17,610 okay so this is one of the ways in order to produce a manufactured product and to 50 00:04:17,610 --> 00:04:25,430 sell it okay the other development in trading is that they are going to 51 00:04:25,430 --> 00:04:31,430 improve their roads and they are going to create channels okay so remember this 52 00:04:31,430 --> 00:04:38,209 if you want to sell you need wood roads if the roads are dirt roads it means 53 00:04:38,209 --> 00:04:47,189 roads made of dirt, made of dirt, that if it rains it forms mud and there is no god that moves a car 54 00:04:47,189 --> 00:04:52,610 what you need is to improve these roads to make better roads 55 00:04:52,610 --> 00:04:59,149 in order to trade faster and also safer because you can move faster you can 56 00:04:59,149 --> 00:05:07,389 connect different places inside for example spain and of course if you can trade faster you can sell 57 00:05:07,389 --> 00:05:13,230 more and if you can sell more you get more money you earn more money right the other part is that 58 00:05:13,230 --> 00:05:20,990 they are going to create channels and where what we when we talk about channels means to connect 59 00:05:20,990 --> 00:05:27,910 okay two different rivers for example or to connect two different areas through a 60 00:05:27,910 --> 00:05:33,730 river okay for example the Panama Channel is connecting the Atlantic Ocean 61 00:05:33,730 --> 00:05:40,569 with the Pacific Ocean so it means you don't have to surround South America in 62 00:05:40,569 --> 00:05:45,430 order to go to the Pacific you can cross through this Panama Channel so that's 63 00:05:45,430 --> 00:05:51,550 the idea they are going to develop this fluvial trade it means straight through 64 00:05:51,550 --> 00:06:00,730 the rivers or through channels okay so the idea is to make trade faster inside 65 00:06:00,730 --> 00:06:06,050 the country okay so imagine we have two rivers we connect the two rivers with a 66 00:06:06,050 --> 00:06:11,350 channel so it means we can go from one place to the other faster using the 67 00:06:11,350 --> 00:06:17,110 water rather than using the roads because not all the roads are good roads 68 00:06:17,110 --> 00:06:23,750 in order to move fast. So these are two important developments related with 69 00:06:23,750 --> 00:06:29,129 trade inside the different countries. First the development or continuing 70 00:06:29,129 --> 00:06:37,470 using the domestic system and the second is the improvement in roads and also to 71 00:06:37,470 --> 00:06:45,060 build channels okay the other part is the international trade but the 72 00:06:45,060 --> 00:06:48,720 international trade is going to be based on this the colonial empires let's check 73 00:06:48,720 --> 00:06:54,980 let's see this map okay what you see is that Spain is controlling most part of 74 00:06:54,980 --> 00:06:59,720 America France is controlling part of North America also Great Britain and 75 00:06:59,720 --> 00:07:04,879 Portugal is controlling part of what is controlling Brazil is part of South 76 00:07:04,879 --> 00:07:10,980 America okay also Portugal is going to have different colonies in Africa Great 77 00:07:10,980 --> 00:07:17,040 Britain and France are going are going to control part of India the Netherlands 78 00:07:17,040 --> 00:07:24,379 are going to control part of Indonesia and also Cape Town or South Africa okay 79 00:07:24,379 --> 00:07:28,879 so what we are going to see is that international trade is going to be based 80 00:07:28,879 --> 00:07:34,439 on these colonies okay why these countries are going to create these 81 00:07:34,439 --> 00:07:42,579 colonies in order to obtain cheap raw materials that that's the basic idea 82 00:07:42,579 --> 00:07:49,319 okay so the idea is these countries that they have the industries they know how 83 00:07:49,319 --> 00:07:54,800 to produce manufactured products but they are going to use these colonies in 84 00:07:54,800 --> 00:08:01,459 order to obtain raw materials that they cannot find in Europe or that to produce 85 00:08:01,459 --> 00:08:06,079 them in Europe is really expensive so what they are going to create is what we 86 00:08:06,079 --> 00:08:12,199 call triangular system the triangular system is the relation between Europe 87 00:08:12,199 --> 00:08:17,620 Africa and America okay there is going to be a economic triangle created here 88 00:08:17,620 --> 00:08:23,240 the idea is the Europeans are going to go to Africa to the coastal areas of 89 00:08:23,240 --> 00:08:31,399 Africa they are going to obtain slaves here they are going to take the slaves 90 00:08:31,399 --> 00:08:38,000 to America in order to work in the different sorry in the different 91 00:08:38,000 --> 00:08:43,779 plantations that they are cultivation areas in order to produce raw materials 92 00:08:43,779 --> 00:08:48,919 also the Europeans are going to are going to sell manufactured products here 93 00:08:48,919 --> 00:08:52,580 in America because they need these manufactured products as they need in 94 00:08:52,580 --> 00:08:58,399 Europe but they do not have the instruments in order to produce these 95 00:08:58,399 --> 00:09:04,360 manufactured products. After that what they are going to do the Europeans is to 96 00:09:04,360 --> 00:09:12,759 get their raw materials from America to Europe in order to keep producing these 97 00:09:12,759 --> 00:09:17,840 manufactured products. So it means Europeans go to Africa of them slaves it 98 00:09:17,840 --> 00:09:24,440 means labor force they are going to take these slaves along with the European 99 00:09:24,440 --> 00:09:30,139 manufacturers to America so they sell the slaves and the manufactured products 100 00:09:30,139 --> 00:09:35,799 in the colonies in the colonies they they are going to obtain the raw 101 00:09:35,799 --> 00:09:40,600 materials that they are going to use them in Europe in order to produce more 102 00:09:40,600 --> 00:09:47,919 manufactured products okay so this is called triangular system okay is the 103 00:09:47,919 --> 00:09:54,600 relation between Europe Africa and America okay and also they are going to 104 00:09:54,600 --> 00:10:02,639 trade with Asia so which are going to be the colonial empires in Africa America 105 00:10:02,639 --> 00:10:07,200 and Asia as we have seen and this is the the commercial transactions is the 106 00:10:07,200 --> 00:10:11,759 triangular system based on that okay slaves are manufactured products to 107 00:10:11,759 --> 00:10:15,659 America and from America the raw materials to Europe in order to produce 108 00:10:15,659 --> 00:10:23,899 more manufactured products. So as you can see here better this is the triangle 109 00:10:24,000 --> 00:10:32,080 created by these commercial transactions okay the slaves slaves to America the 110 00:10:32,080 --> 00:10:36,840 manufactured products to America and then the raw materials to Europe gold 111 00:10:36,840 --> 00:10:47,539 silver, cotton, sugar, coffee, sorry, wool, cotton, tobacco, etc, leather, etc, okay? 112 00:10:47,539 --> 00:10:51,240 So these products that they are going to be cheaper here, they are going to be 113 00:10:51,240 --> 00:10:57,299 sent to Europe in order to produce the manufactured products to sell them again 114 00:10:57,299 --> 00:11:01,500 in these places. Why they are going to sell all these manufactured products in 115 00:11:01,500 --> 00:11:05,940 America? Because in America they, as they are colonies controlled by these 116 00:11:05,940 --> 00:11:11,700 countries there is no industrial production they do not produce the 117 00:11:11,700 --> 00:11:22,019 manufactured products okay also in India or Indonesia etc okay so when we talk 118 00:11:22,019 --> 00:11:29,299 about this slavery or this trade related with or to obtain slaves and this is 119 00:11:29,299 --> 00:11:34,100 going to be a really profitable trade or business okay these Europeans go to 120 00:11:34,100 --> 00:11:40,940 Africa they obtain these slaves as you can see they try to get as much slaves 121 00:11:40,940 --> 00:11:48,860 as they can in order to in order to transport them in one ship to America 122 00:11:48,860 --> 00:11:55,820 okay these are real pictures of how they set they place the different people the 123 00:11:55,820 --> 00:12:09,200 inside the boats of course these people have no fresh air they are going to well they they have 124 00:12:09,200 --> 00:12:14,179 no toilets so imagine where they are going to poop or pee they are going to poop or pee there 125 00:12:14,179 --> 00:12:22,940 so they are going to get dirt etc so you can imagine the smell inside these boats boats that 126 00:12:22,940 --> 00:12:29,820 take more than one two or even three months to reach America so imagine the 127 00:12:29,820 --> 00:12:38,779 living conditions of these people inside the boats okay so what they are going to 128 00:12:38,779 --> 00:12:46,940 do is to go to Africa they are going to pay some tribes in the coastal areas of 129 00:12:46,940 --> 00:12:53,059 Africa to obtain these slaves so the idea is we have different tribes in the 130 00:12:53,059 --> 00:12:59,379 coastal areas of Africa that they are going to capture African people from 131 00:12:59,379 --> 00:13:05,120 different tribes in order to sell them to the Europeans. What they are going to 132 00:13:05,120 --> 00:13:14,360 obtain in exchange of these slaves? Basically alcohol, guns and powder in 133 00:13:14,360 --> 00:13:20,120 order to fire the guns. So imagine these tribes that they are making business 134 00:13:20,120 --> 00:13:25,879 with the other African tribes obtaining these slaves they are going to be really 135 00:13:25,879 --> 00:13:30,200 powerful and wealthy due to this business because they are going to 136 00:13:30,200 --> 00:13:38,240 obtain the new technologies from Europe okay that the day and that's the reason 137 00:13:38,240 --> 00:13:47,220 why they can control and obtain these slaves okay so Africans are going to 138 00:13:47,220 --> 00:13:52,860 capture other Africans to sell those Africans to the Europeans in order to 139 00:13:52,860 --> 00:13:59,480 send these people to America. Of course, well this is an image, this is 140 00:13:59,480 --> 00:14:05,759 idealized, this is not real, okay, because they have not that much space in a 141 00:14:05,759 --> 00:14:12,179 boat, okay, but this is an image in order to see how the situation could be in an 142 00:14:12,179 --> 00:14:21,779 African boat the average is that the 30% of the slaves are going to die during 143 00:14:21,779 --> 00:14:28,419 the trip okay 30% of them they are going to die here remember the conditions 144 00:14:28,419 --> 00:14:38,159 remember no toilet no fresher barely food and of course they are going to 145 00:14:38,159 --> 00:14:43,679 have these chains these handcuffs in order not to move okay they are going to 146 00:14:43,679 --> 00:14:51,320 be placing in these positions in order to try to use the space efficiently 147 00:14:51,320 --> 00:14:58,220 apart from this they are going to use these slaves in the plantations okay it 148 00:14:58,220 --> 00:15:04,259 means areas big areas where they are going to plant the cotton the wood the 149 00:15:04,259 --> 00:15:10,519 species the tea that they is going to be sent to Europe okay so these are the 150 00:15:10,519 --> 00:15:16,240 areas where the slaves are going to work okay and they are working for the 151 00:15:16,240 --> 00:15:22,379 European people that they are obtaining money from this from these crops from 152 00:15:22,379 --> 00:15:29,779 these agricultural products finally who is going to carry out this economic 153 00:15:29,779 --> 00:15:35,299 activity of course commercial companies European commercial companies okay that 154 00:15:35,299 --> 00:15:41,279 they are going to take the manufacturers from Europe to America they are going to 155 00:15:41,279 --> 00:15:46,820 export the manufacturer products they are going to sell these products in in 156 00:15:46,820 --> 00:15:51,500 America and they are going to import these raw materials from America it 157 00:15:51,500 --> 00:15:56,799 means they are going to obtain these raw materials from America and they are 158 00:15:56,799 --> 00:16:01,259 going to use this they are going to trade with it with different materials 159 00:16:01,259 --> 00:16:05,919 in Europe okay so the idea is to export the manufactured products to America and 160 00:16:05,919 --> 00:16:13,679 to import the raw materials from America to Europe okay so trade is going to be 161 00:16:13,679 --> 00:16:18,740 the second most important economic activity as you can see they they are 162 00:16:18,740 --> 00:16:22,620 going to develop the domestic or national trade and they are going to 163 00:16:22,620 --> 00:16:27,620 develop this important international trade or foreign trade based on these 164 00:16:27,620 --> 00:16:33,899 colonial empires and one of the most important pieces of these colonial 165 00:16:33,899 --> 00:16:38,740 empires are going to be the slaves that they are one of the products in this 166 00:16:38,740 --> 00:16:43,879 triangular system and they are going to be the labor force in this plantation 167 00:16:43,879 --> 00:16:46,639 economy