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The 1500s and early 1600s also introduced the process of commodification    to the New World. American silver, tobacco, and other items, which were used by native peoples for ritual purposes, became European commodities with a monetary value that could be bought and sold. Before the arrival of the Spanish, for example, the Inca people of the Andes consumed chicha , a corn beer, for ritual purposes only. When the Spanish discovered chicha, they bought and traded for it, turning it into a commodity instead of a ritual substance. Commodification thus recast native economies and spurred the process of early commercial capitalism. New World resources, from plants to animal pelts, held the promise of wealth for European imperial powers.

The columbian exchange

As Europeans traversed the Atlantic, they brought with them plants, animals, and diseases that changed lives and landscapes on both sides of the ocean. These two-way exchanges between the Americas and Europe/Africa are known collectively as the Columbian Exchange    ( [link] ).

A map shows the “Columbian Exchange” of goods and diseases. Goods include crops such as maize, potatoes, tobacco, beans, squash, peppers, cacao, cassava, and manioc traveling east as well as rye, wheat, rice, sugar, and tea traveling west. Animals such as cattle, horses, and pigs traveled westward. Diseases include syphilis, malaria, smallpox, yellow fever, and plague.
With European exploration and settlement of the New World, goods and diseases began crossing the Atlantic Ocean in both directions. This “Columbian Exchange” soon had global implications.

Of all the commodities in the Atlantic World, sugar proved to be the most important. Indeed, sugar carried the same economic importance as oil does today. European rivals raced to create sugar plantations in the Americas and fought wars for control of some of the best sugar production areas. Although refined sugar was available in the Old World, Europe’s harsher climate made sugarcane difficult to grow, and it was not plentiful. Columbus brought sugar to Hispaniola in 1493, and the new crop was growing there by the end of the 1490s. By the first decades of the 1500s, the Spanish were building sugar mills on the island. Over the next century of colonization, Caribbean islands and most other tropical areas became centers of sugar production.

Though of secondary importance to sugar, tobacco achieved great value for Europeans as a cash crop as well. Native peoples had been growing it for medicinal and ritual purposes for centuries before European contact, smoking it in pipes or powdering it to use as snuff. They believed tobacco could improve concentration and enhance wisdom. To some, its use meant achieving an entranced, altered, or divine state; entering a spiritual place.

Tobacco was unknown in Europe before 1492, and it carried a negative stigma at first. The early Spanish explorers considered natives’ use of tobacco to be proof of their savagery and, because of the fire and smoke produced in the consumption of tobacco, evidence of the Devil’s sway in the New World. Gradually, however, European colonists became accustomed to and even took up the habit of smoking, and they brought it across the Atlantic. As did the Indians, Europeans ascribed medicinal properties to tobacco, claiming that it could cure headaches and skin irritations. Even so, Europeans did not import tobacco in great quantities until the 1590s. At that time, it became the first truly global commodity; English, French, Dutch, Spanish, and Portuguese colonists all grew it for the world market.

Questions & Answers

differentiate between demand and supply giving examples
Lambiv Reply
differentiated between demand and supply using examples
Lambiv
what is labour ?
Lambiv
how will I do?
Venny Reply
how is the graph works?I don't fully understand
Rezat Reply
information
Eliyee
devaluation
Eliyee
t
WARKISA
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Lambiv
multiple choice question
Aster Reply
appreciation
Eliyee
explain perfect market
Lindiwe Reply
In economics, a perfect market refers to a theoretical construct where all participants have perfect information, goods are homogenous, there are no barriers to entry or exit, and prices are determined solely by supply and demand. It's an idealized model used for analysis,
Ezea
What is ceteris paribus?
Shukri Reply
other things being equal
AI-Robot
When MP₁ becomes negative, TP start to decline. Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of lab
Kelo
Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of labour (APL) and marginal product of labour (MPL)
Kelo
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Shukri
Can I ask you other question?
Shukri
what is monopoly mean?
Habtamu Reply
What is different between quantity demand and demand?
Shukri Reply
Quantity demanded refers to the specific amount of a good or service that consumers are willing and able to purchase at a give price and within a specific time period. Demand, on the other hand, is a broader concept that encompasses the entire relationship between price and quantity demanded
Ezea
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Shukri
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Lilia Reply
what is the difference between economic growth and development
Fiker Reply
Economic growth as an increase in the production and consumption of goods and services within an economy.but Economic development as a broader concept that encompasses not only economic growth but also social & human well being.
Shukri
production function means
Jabir
What do you think is more important to focus on when considering inequality ?
Abdisa Reply
any question about economics?
Awais Reply
sir...I just want to ask one question... Define the term contract curve? if you are free please help me to find this answer 🙏
Asui
it is a curve that we get after connecting the pareto optimal combinations of two consumers after their mutually beneficial trade offs
Awais
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Asui
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities, where neither p
Cornelius
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities,
Cornelius
Suppose a consumer consuming two commodities X and Y has The following utility function u=X0.4 Y0.6. If the price of the X and Y are 2 and 3 respectively and income Constraint is birr 50. A,Calculate quantities of x and y which maximize utility. B,Calculate value of Lagrange multiplier. C,Calculate quantities of X and Y consumed with a given price. D,alculate optimum level of output .
Feyisa Reply
Answer
Feyisa
c
Jabir
the market for lemon has 10 potential consumers, each having an individual demand curve p=101-10Qi, where p is price in dollar's per cup and Qi is the number of cups demanded per week by the i th consumer.Find the market demand curve using algebra. Draw an individual demand curve and the market dema
Gsbwnw Reply
suppose the production function is given by ( L, K)=L¼K¾.assuming capital is fixed find APL and MPL. consider the following short run production function:Q=6L²-0.4L³ a) find the value of L that maximizes output b)find the value of L that maximizes marginal product
Abdureman
types of unemployment
Yomi Reply
What is the difference between perfect competition and monopolistic competition?
Mohammed
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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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