One important theme in AP World History is economic systems. Questions on the exam will ask you to identify and characterize economic systems. You'll also have to describe how a country's economics impacts its population.
I'm a licensed teacher and professional tutor with over ten years of experience in education. I've helped dozens of students improve their grades in their AP World History class. This article will cover what counts as part of an economic system. It will also show you relevant examples from AP World History. Read on for tips you can use to improve your grades today!
Note: This post is part of a series on historical themes covered in AP World History. A common way to remember these themes is using the acronym SPICE-T. You can learn more about the basics of historical themes and SPICE-T at this link.
Economic Systems
Definition
Control of Natural Resources
Groups of people have to find and use natural resources. They use these resources to produce goods. People then need to get those resources to people who need or want them. Salt is an important natural resource. In the ancient world, salt was important to preserve food and enhance flavor. Salt was also important to human health. Salt was often more expensive than gold. Controlling these mines helped the Mali Empire become powerful and wealthy.
Production of Goods
Every human society must produce goods that people need. This includes food, shelter, and clothing. Most societies also produce goods that people want. This includes luxury trade goods and consumer products. Economies must also produce tools that help people do important tasks. Many societies have used forced or coerced labor to produce goods. The Industrial Revolution changed the way humans produce products. Machines started to replace work done by humans and animals. This made it easier to produce large amounts of products. This process also reduced the prices of goods.
Consumption of Goods
Goods are usually distributed and used by individuals after production. The amount of goods that people consume has varied over time and in different regions. Wealthier cultures and people tend to consume more products than poorer ones. The Industrial Revolution made products cheaper. This meant more people could afford to buy them. The Industrial Revolution also helped lift many people into higher social classes. These people had more money to spend on entertainment and convenience. This led to the development of consumer culture. This became a major part of the economies of the United States and Western Europe.
Trade Routes
Trade routes are the paths that traders use to take their goods to new markets. Traders made these voyages to make a profit. Trade networks have crossed continents and the ocean for hundreds of years. Today, trade networks also use planes and virtual spaces to bridge physical distance. Unit 2 is all about trade routes! One of these trade routes was the Trans-Saharan Trade Route. Merchants risked their lives crossing the desert to make a fortune trading gold and salt in distant lands. These trade routes connected the Mali Empire to the rest of the world. You can learn more about it here!
Economic Systems
Economic systems organize the production and distribution of products and services. Economic systems also influence decisions. People have to decide what goods to make and how to make them. They also have to make decisions about sharing or trading resources. Feudalism was an economic and political system. The king owned the land. He gave the land to his vassals. The vassals controlled the land and the serfs who lived there. The serfs had to grow crops on that land. They gave most of the crops to the vassal. He gave some of the crops to his lord, kept some, and distributed the rest to other workers. This system determined who owned land and what serfs produced on the land. It also influenced how the vassals and king distributed important resources.
Forced and Coerced Labor
Forced labor occurs when a person has to to work against their will. Coerced labor occurs when people pressure others into working. Coerced laborers may agree to work. That choice occurs when the other options are worse or nonexistent. The arrangement is still exploitive. In practice, the distinction between forced labor and coerced labor is often blurry. A corvée is a system of forced or coerced labor. In a corvée, people must work for a set period of time each year. For the rest of the year, they are free to make their own choices. This system is most common in agriculture and infrastructure projects. The Inca Empire and Spanish Empire used a form of corvée called the mi'ta.
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