Final answer:
The Ottoman and Mughal empires utilized taxation and control over trade to finance their operations, while European nations developed joint stock companies and banking systems like the City of London to fund exploration and colonization. The shift from land-based to overseas empires facilitated the Age of Discovery, transforming trade, colonization, and global relations.
Step-by-step explanation:
Financing Land-Based Empires: 1450-1750
Two significant land-based empires, the Ottoman Empire and Mughal Empire, deployed various strategies to finance their realms between 1450 and 1750. The Ottoman Empire, stretching across parts of Europe, Africa, and Asia, utilized a range of economic policies, including taxation of its diverse populations, control over trade routes, and strategic monopolies over certain goods such as silk and spices. On the other hand, the Mughal Empire in India amassed wealth through land revenue systems like 'Zabt' and 'Dahsala' and maintained a robust trade network, engaging in commerce not only within the empire but also with European trading companies.
The transition from land-based to overseas empires marked a significant change as maritime exploration and the establishment of trade routes led to the Age of Discovery. This era significantly altered the course of history, catalyzing economic globalization and the integrative processes of the modern world. Overseas empires sought wealth through trade, colonization, and exploitation of resources, fundamentally shifting patterns of international relations and economics.
Financing Overseas Exploration and Colonization
European nations like Spain and England fostered new financial systems to support overseas exploration, as seen with the joint stock company structure that funded English colonial ventures like the Virginia Company. The spread of mercantilism, and the use of commercial empires fuelled by the commenda system, further exemplified Europe's shift toward maritime empires and colonization. Meanwhile, the City of London emerged as a hub of international finance, backing the expansion and maintenance of the British Empire.
The interaction between European nations and the established land-based empires in Asia was complex, with only limited European military success due to the sheer power and wealth of empires like the Qing, Mughal, and Ottoman. Nonetheless, trade relations, often coerced or monopolistic, such as the Portuguese control over Indian Ocean trade routes, began to reconfigure the pre-existing balance of global commerce.