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In: Economics

Mesopotamia, India, and China had three of the earliest economic networks. How did their respective trade...

Mesopotamia, India, and China had three of the earliest economic networks. How did their respective trade systems develop? Discuss how iron was a significant factor in these early economies.

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Expert Solution

The Eastern civilization that existed between the rivers Euphrates and Tigris , was named Mesopotamia. Mesopotamians settled between these two Rivers. They grew crops there. Small farming settlements were established by the 7th century. Later , in the southern Mesopotamia , irrigation systems were developed. Mesopotamians also learned to control the water by dams and use of aqueducts. Mesopotamian trade started originally because of the fertility of it's land. Merchants traded in food items , animals , mud ,clay and tools.

Chinese civilization developed around 5000 ago. Chinese people produced things like paper , gunpowder and compass which are used till this time. The Canton system , from 1757 till 1852 , was practiced in China to control trade.

Towards the end of the 18th century ,the efforts of China to stop the importation of opium led to the first opium war.

In India, the earliest civilization was Indus valley civilization. It was named after Indus river. Two cities Harappa and the Mohenjodaro together formed this civilization. The Indus people also traded with the other civilizations , like Mesopotamians did. There was an extensive maritime trade between the Indus valley civilization and other civilizations. Coloured gem stones, pearls, gold and seashells were also traded.

The Iron was a significant factor in these early economies as with the help of iron tools were made , which helped in production. With the passage of time the early merchants also learned to make steel with the help of iron.

Iron brought significant changes to the trade development of early economies. Iron tools made the processes more efficient and allowed the farmers and the traders to have more time for other activities. This time was spent on making salt , sewing clothes etc . Many of these items were then traded. Hence iron helped to expand and develop the trade of the early economies significantly.


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