Final answer:
Japan's integration into trade systems from 500-1500 C.E. was dynamic, initially engaging actively with China, shifting towards internal trade, and later re-engaging internationally through European contact.
Step-by-step explanation:
A hypothesis regarding Japan's level of integration with systems of trade and exchange during the period 500-1500 C.E. may be framed based on historical interactions and developments. Initially, Japan actively engaged with China, importing diverse aspects of Chinese culture, from arts and technology to political structures. However, after the failed Mongol invasions and Japan's subsequent withdrawal as a tribute state, its official engagement with the international system led by China ceased, shifting towards informal commerce.
During the Kamakura and Sengoku periods, power in Japan was fragmented among various regional lords known as daimyo, leading to a decentralized structure. Nonetheless, significant internal trade and commerce continued. This indicates that Japan maintained domestic trade and regional exchange, notwithstanding the limited official international trade.
In the 16th century, with the arrival of the Portuguese and Spanish and later the Dutch, Japan experienced an increased openness to foreign influence and trade. The introduction of European goods, such as firearms, and their integration into Japanese warfare, as well as the partial adoption of Christianity by some daimyo, demonstrate evolving international connections.
Based on these observations, the hypothesis could be that Japan's level of integration into global trade systems from 500-1500 C.E. was dynamic and fluctuating. It transitioned from active participation in the Chinese tribute system to a period of more insular but still vibrant internal trade, followed by a re-engagement with international trade prompted by European contact in the latter part of this period.