Consequences of Exploration for the Development of English Trade (Edexcel A-Level History): Revision Notes
Consequences of Exploration for the Development of English Trade
Background and context
While some English exploration occurred during Henry VII's reign, activity declined significantly under Henry VIII. During this time, Spain and Portugal held dominant positions in global exploration, having conquered extensive territories in the West Indies and South America. By Elizabeth I's reign, Spain controlled almost all trade with the New World through what was effectively a monopoly - complete control of a trade or industry by one person or group, eliminating all competition.
England's exploration activity had stalled under Henry VIII, leaving Spain and Portugal to dominate global trade routes. This Spanish monopoly over New World trade would become a major driver for English exploration attempts.
Interest in English exploration revived during Edward VI's reign, largely driven by growing concerns about England's heavy dependence on Antwerp as a trading centre. These concerns proved justified when problems arose in the 1560s and 1570s. From 1553 onwards, English explorers focused primarily on discovering sea routes to Asia by searching for the north-eastern passage (thought to exist north of Europe) and the north-western passage (believed to lie north of Canada). Although these attempts failed, they led to significant developments in English trade through the establishment of new overseas trading connections.
Trade with Russia and the Baltic region
The 1553 expedition
The first major English voyage of discovery departed in 1553, searching for the north-east passage to Asia. The Duke of Northumberland sponsored this expedition, which was jointly led by soldier Hugh Willoughby and navigator Richard Chancellor. Although the initial goal proved elusive, Chancellor achieved remarkable success by reaching the Baltic Sea and the White Sea. From there, he travelled overland through Russia to Moscow, where he established a crucial trading post.
Chancellor's Breakthrough Journey (1553)
While searching for the north-east passage to Asia, Richard Chancellor's expedition took an unexpected turn:
- Initial voyage: Set sail from England heading north-east
- Reaching the White Sea: Successfully navigated to Russia's northern waters
- Overland journey: Travelled from the coast to Moscow
- Establishing trade: Negotiated directly with Russian authorities to create England's first Russian trading post
This "failed" search for a passage to Asia became a major success in opening new European markets for England.
The Russia Company and Baltic trade
Chancellor's achievement led directly to the creation of a joint-stock company called the Russia Company (also known as the Muscovy Company) in 1555. This company allowed investors to pool resources and share risks. While trade with Russia remained relatively limited in scale, Chancellor's success coincided with the declining power of the Hanseatic League - a powerful commercial alliance that had previously dominated Baltic trade. This created opportunities for English merchants.
The improved trading prospects in the Baltic region led to the establishment of the Eastland Company in 1579, which oversaw trade with the area. This development particularly benefited the northern English ports of York and Hull, which became centres for exchanging English cloth for essential materials like flax (used in textile production) and corn, as well as timber and tar needed for shipbuilding.
The Hanseatic League's Decline
The Hanseatic League was a powerful alliance of merchant guilds and market towns that had controlled Baltic trade for centuries. Its weakening during the 1550s-1570s created a perfect opportunity for English merchants to establish their own Baltic trading networks, particularly through the Eastland Company.
Mediterranean trade expansion
Morocco and the Barbary Company
English merchants began developing trade with Muslim states in the Mediterranean during the 1550s. In Morocco, English merchants traded cloth for sugar, establishing a regular commercial relationship. This trade was formalised in 1585 with the creation of the Barbary Company, a regulated company (where members followed common rules but traded independently). The Earl of Leicester led this venture, though it ultimately failed to generate profits.
The Turkish Company and profitable trade
Far more successful was the trading relationship established with the Ottoman Empire during the 1570s. English merchants negotiated deals with the sultan of Turkey, leading to the creation of the Turkish Company in 1581. This proved highly profitable for England.
England's Most Profitable Trade After Cloth
The Turkish Company became England's most lucrative commercial venture apart from the traditional cloth trade. English merchants provided lead and tin - metals essential for the Ottoman military and economy - while importing exotic Turkish goods such as carpets, spices, and luxury textiles. This mutually beneficial arrangement generated substantial profits throughout Elizabeth's reign.
Challenging Spanish and Portuguese monopolies
Guinea Coast expeditions
Between 1553 and the early 1570s, English merchants launched a series of expeditions to the Guinea Coast of West Africa, targeting the region between modern-day Ghana and Sierra Leone. These voyages aimed to acquire gold and pepper, valuable commodities in European markets. However, these expeditions proved violent and controversial because they led to direct confrontations with the Portuguese, who controlled trading rights in the region. The Portuguese fiercely defended their monopoly, resulting in armed conflicts at sea.
John Hawkins and the beginning of the slave trade
These African expeditions had a darker consequence - they marked the beginning of English involvement in the transatlantic slave trade. The explorer and privateer John Hawkins pioneered this horrific trade in 1562, capturing enslaved Africans and transporting them to work in the West Indies.
What was a Privateer?
A privateer was a pirate sponsored by the English state. The Crown would take a share of any treasure captured by the privateer, making it a form of state-sanctioned piracy. This arrangement allowed Elizabeth I to benefit from attacks on Spanish shipping while maintaining some level of deniability.
In 1568, Hawkins and his fleet sought harbour at San Juan de Ulua in Mexico, where they were attacked by a Spanish fleet commanded by the newly appointed viceroy of New Spain. Three of Hawkins' six ships were destroyed, and the survivors limped home having lost most of their profits. This attack symbolised the deteriorating relationship between England and Spain. Significantly, Elizabeth I had partly funded Hawkins' activities and took a share of the profits, directly implicating the Crown in challenging Spanish interests.
The Consequences of San Juan de Ulua (1568)
The Spanish attack on Hawkins' fleet at San Juan de Ulua marked a turning point in Anglo-Spanish relations. Elizabeth I's financial involvement in Hawkins' expedition meant the Crown was directly complicit in challenging Spanish monopolies. This defeat didn't stop English challenges to Spanish power - instead, it encouraged even more aggressive action, particularly by Francis Drake.
Francis Drake's ventures and circumnavigation
Attacks on Spanish shipping
The defeat of Hawkins in 1568 did not end English challenges to Spanish power. Instead, it encouraged more aggressive action by Francis Drake, who launched a series of attacks on Spanish shipping in the early 1570s. In 1577, Drake embarked on what would become his famous circumnavigation of the globe, completed in 1580.
Opening trade with Asia
Drake's expedition between 1577 and 1580 had multiple objectives beyond simply attacking Spanish vessels. He also attempted to discover the north-west passage to Asia, though this goal proved unsuccessful. However, Drake achieved a breakthrough in establishing English trade with Asia when he made contact with the sultan of Ternate in Indonesia. This initial contact laid the groundwork for future Asian trade.
The East India Company
The trading connections Drake established eventually led to the formation of one of England's most famous and successful commercial ventures - the East India Company, founded in 1600. This company would dominate English trade with Asia for over two centuries and play a crucial role in building the British Empire.
Drake's Multiple Achievements (1577-1580)
Drake's circumnavigation expedition achieved several important goals:
- First English circumnavigation of the globe
- Successful attacks on Spanish treasure ships in the Pacific
- Initial trade contacts with the sultan of Ternate in Indonesia
- Exploration of potential routes to Asia
- Massive profits for investors, including Elizabeth I
These achievements made Drake a national hero and demonstrated that England could successfully challenge Spanish naval dominance.
North American exploration and colonisation
Further searches for the north-west passage
Drake's success inspired additional exploration by Martin Frobisher and John Davis, who made voyages to North America hoping to find the north-west passage. Although these expeditions failed to discover the sought-after route to Asia, they had important consequences for English expansion.
Virginia colonies
The exploration of the North American coast led to England's first attempts at colonisation. Sir Walter Raleigh masterminded the establishment of colonies at Roanoke Island in 1585 and Chesapeake Bay in 1587. Both settlements were located in Virginia, which was named in honour of Elizabeth I (the "Virgin Queen").
Learning from Failure: The Virginia Colonies
Although both Roanoke Island (1585) and Chesapeake Bay (1587) colonies ultimately failed and were abandoned, they provided valuable lessons about:
- The challenges of establishing self-sustaining settlements
- The need for better supply lines from England
- Relations with indigenous populations
- Climate and agricultural conditions in North America
These lessons paved the way for successful English colonisation in the 17th century, including the establishment of Jamestown in 1607.
The Atlantic trading triangle
These colonial attempts, despite their failure, contributed to the development of the Atlantic trade, which particularly benefited the western ports of Exeter and Bristol. A trading triangle emerged connecting three continents: English ships transported enslaved Africans to work in colonies in the Americas; these ships then loaded American goods (such as tobacco, sugar, and cotton) to import into England; finally, English manufactured goods, particularly cloth, were exported to Africa to exchange for more enslaved people.
The Atlantic Trading Triangle
The triangular trade route connected three continents in a brutal but profitable system:
- England to Africa: Ships carried manufactured goods (especially cloth) to exchange for enslaved people
- Africa to Americas: Enslaved Africans were transported across the Atlantic (the "Middle Passage") to work in plantations
- Americas to England: Ships returned with colonial products like tobacco, sugar, and cotton
This system generated significant profits for English merchants while causing immense human suffering for millions of enslaved Africans.
Overall impact on English trade
Despite these new trading ventures and markets, the English export economy remained heavily dependent on cloth throughout the period. The cloth trade continued to dominate English exports, just as it had at the beginning of the Tudor period. However, the consequences of exploration and expansion meant that by 1588, England had access to significantly wider markets than existed in 1509. English merchants now traded with Russia, the Baltic states, the Mediterranean world, parts of Africa, Asia, and were beginning to establish connections with the Americas.
The various trading companies established during this period - the Russia Company (1555), the Eastland Company (1579), the Turkish Company (1581), the Barbary Company (1585), and eventually the East India Company (1600) - created a more diverse and resilient trading network. While not all were immediately profitable, they reduced England's dangerous over-reliance on a single market (Antwerp) and laid foundations for future commercial expansion.
Key Trading Companies and Their Focus
- Russia/Muscovy Company (1555): Trade with Russia via the White Sea; timber, tar, flax, and corn
- Eastland Company (1579): Baltic trade; benefited York and Hull
- Turkish Company (1581): Most profitable trade after cloth; exotic goods from Ottoman Empire
- Barbary Company (1585): Morocco trade; ultimately unprofitable
- East India Company (1600): Asian trade; would become England's most important trading venture
Key figures in English exploration and trade
Richard Chancellor: Navigator who reached Russia in 1553 and established the first trading post in Moscow, leading to the creation of the Russia Company.
John Hawkins: Explorer and privateer who began the English slave trade in 1562 and was defeated by the Spanish at San Juan de Ulua in 1568.
Francis Drake: Privateer who circumnavigated the globe (1577-1580), attacked Spanish shipping, and established initial contacts for Asian trade.
Sir Walter Raleigh: Organised the first English colonial attempts at Roanoke Island and Chesapeake Bay in Virginia.
Martin Frobisher and John Davis: Explorers who searched for the north-west passage in North America.
Key Points to Remember
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English exploration revived from 1553 onwards, driven by concerns about over-dependence on Antwerp and the desire to find routes to Asia through the north-eastern and north-western passages.
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New trading companies created diverse trading networks: Russia/Muscovy Company (1555), Eastland Company (1579), Turkish Company (1581), Barbary Company (1585), and East India Company (1600).
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English explorers challenged Spanish and Portuguese monopolies through voyages to the Guinea Coast, circumnavigation of the globe, and attacks on Spanish shipping, though this increased tensions with Spain.
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The English slave trade began in 1562 under John Hawkins, developing into the Atlantic trading triangle that connected England, Africa, and the Americas.
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Despite new markets in Russia, the Baltic, the Mediterranean, and nascent connections with Asia and America, cloth remained the dominant English export throughout the period, though markets had significantly widened by 1588.
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The Turkish Company proved to be England's most profitable trade after cloth, while failed colonial ventures in Virginia provided valuable lessons for future 17th-century successes.