Exploration and Expansion
Section 2: The Foundations of European Exploration
In this section you will learn what technological advances made European exploration
possible. You discover the effects of economic changes known as the Commercial
Revolution. You will also learn about mercantilism and the role it played in the colonies.
Finally, you will find out how social change in Europe affected exploration and the
establishment of colonies.
Section 2 Summary
Since the Crusades, Europeans had valued trade goods from India, China, and Southeast
Asia. Traders sought new routes to these distant lands. Their efforts were aided by new
technology. First, mapmaking improved through the study of ancient geographers such as
Ptolemy, who knew that the earth was round. Second, improved navigation instruments
allowed ships to sail far from land without getting lost. The compass, created in the 1300s,
uses a magnetized piece of metal that points to the north. Finally, Spanish and Portuguese
ship designers improved ship-building technology. Better rudders, or steering devices,
allowed ships to sail against the wind and in varying weather conditions.
Changes in economic practices made European exploration possible. The period of
major economic change between the 1400s and the 1700s is known as the Commercial
Revolution. First, bankers and traders developed a standard system of money. Coins
from Florence and Venice had fixed values. Banks could store large sums of money that
they could lend for overseas trade. Second, a business organization developed called a
joint-stock company. Owners raised money by selling shares, or stock, in the company.
Investors became co-owners and shared in profits. Joint-stock companies raised large
sums of money to finance exploration. European monarchs also supported exploration
and colonization. They hoped that riches gained through conquest would make them more
powerful. Although Italy led the Commercial Revolution, Portugal, Spain and France took
advantage of these opportunities to build empires.
Economic and political change led to a new economic theory. Mercantilism stated
that there was a fixed amount of wealth in the world. To increase its share, a country had
to take wealth from another country. Wealth was measured in gold and silver. A country
could build wealth by mining more gold and silver. Or it could sell more goods than it
bought from foreign countries, creating a favorable balance of trade. To achieve this
balance, a country could impose tariffs, or import taxes on foreign goods. Tariffs raised
the prices of imported goods, discouraging people from buying them. A country could also
encourage exports, especially of manufactured goods, which were more valuable than raw
goods. Government subsidies, or grants of money, encouraged manufacturing. Finally, a
country could gain control of raw materials and precious metals overseas, especially in
colonies. Powerful nations bought raw materials from their own colonies. People in the
colonies, in turn, bought manufactured goods from the home country. European countries
often forbid their colonies to trade with other governments.
Social changes in Europe created in people the desire to explore and resettle. First,
the Renaissance and the Scientific Revolution created curiosity and a spirit of discovery.
Second, the population of Europe had increased, and cities were crowded. Although living
conditions in colonies were harsh, colonists could gain land and better lives. Third, many
people went overseas seeking wealth, especially gold, silver, and jewels. Finally, many
colonists fled religious persecutions of the Reformation and Counter-Reformation. Some
went to spread their religion to new peoples. Many people were motivated by a
combination of these purposes.