PARADOXICAL
The faith chroniclesSaturday, May 02, 2026
Retracing globalization: The Columbian exchange, the Silk Road, the galleon trade, and economic theories
Retracing globalization: The Columbian exchange, the Silk Road, the galleon trade, and economic theories
(A quick survey of literature; corrections welcome)
A long time ago, I was having dinner one time at a Cuban restaurant, Cafe Havana, in Greenbelt (Makati) when I noticed something unexpectedly familiar on my plate but cooked in an exotic way: black beans, served as a siding to a mango-topped salmon dish. Back home in Pangasinan, my folks would now and then have for lunch some soupy sauteed black beaans with bitter gourd leaves and ginger and slabs of fatty pork floating. It has become one of the favorite home dishes I miss, but to find the familiar ingredient on a supposedly Cuban platter was disorienting.
"What are these black beans doing on my plate?" I asked myself. I was supposed to be indulging on something exotic, but I was instead reminded of home (though that is not bad in itself).
It took me some time to realize that what I thought to be the rare beans originally from home were, in fact, originally imports from Cuba, the Caribbean, and the rest of the Americas. It reminded me once again that most, if not all, of our beans in the Philippines were originally from the Americas.
I was reminded of this little incident after reading about the Columbian exchange and the Silk Road from a student essay I was working on.
Columbian Exchange
"Columbian exchange" is a term invented by a relatively obscure historian named Alfred Crosby. This exchange may be one of the major precursors of globalization, for it is responsible for starting off the great global exchange of goods and ideas when the Italian-born Spanish adventurer, Christopher Columbus, ‘found’ the “New World” (the Americas) in the Western Hemisphere while searching for an alternative route to Asia.
“The Columbian landfall” on America, specifically on the Carribean in 1492, “was a turning point in world history,” resulting in “a great influx of Europeans into the American continents [and beyond] over the next century, causing widespread colonization, intermingling, construction of new civilizations and destructions of old ones,” particularly the massive death and near-extinction of American-‘Indian’ nations (Incas, Aztecs, Mayans, etc.).
Disease exchange
- Smallpox, measles, chicken pox, malaria, yellow fever, influenza, and the common cold brought by the Europeans/Spaniards killed off many Native Americans, with smallpox as the top killer.
- In return, the Native Americans brought syphilis to the Europeans.
Ethnic/genetic exchange
- The Spaniards’ participation in the Transatlantic African Slave Trade resulted in intermarriage and mixed races.
Animal exchange
- Horses were introduced from Spain, as well as cattle, pigs, sheep, goats and chickens.
- Animals brought to the 'Old World' (Europe) from the 'New World' were turkeys, llamas, alpacas, and guinea pigs.
Agricultural, environmental and cultural exchange
- The Spaniards’ encomienda and hacienda system brought in new agricultural knowledge, together with forced labor (called the polo y servicio system in colonial Philippines - RO), thus changing the land.
- Populations soared.
- The greatest impact of the Columbian exchange, however, lies in the Americas' maize, potatoes, sweet potatoes, tomatoes, peanuts, manioc, cacao, peppers, most beans, and squash being brought to the rest of the world.
- Potato powered North Europe’s industrialization and population.
- Maize energized South Europe, Africa, and China.
- On a relatively minor note, Europe's pasta was copied from Marco Polo's discovery of China's noodles, which were eventually cooked in a sauce made of the tomate of the Americas.
- Christianity was spread.
Five hundred years later, Christopher Columbus has become more and more a controversial figure, either "a) the precursor to (or catalyst of) Western expansion and spread of Western culture or b) the cause of massive deaths of indigenous peoples, European exploitation of [the Americas] (the mega-continent), and enslavement of the West Indies people." Is he a hero or a ‘zero,’ a friend or a foe? It depends on who you ask.
***
The Silk Road
The trade that resulted from the Silk Road built by the Mongols may also be seen as a precursor of globalization, but it was limited to three continents: Asia, Europe, North Africa.
Silk trading thrived during the Han Dynasty (202 BC - AD 220) in the first and second centuries AD. The Silk Road came about after caravans from the Chinese empire's interiors carried the trade to the west, bringing them in contact with Central Asian tribes, including nomads and pirates. Soon protected by Chinese military defense (135 to 90 BC), foreign trade alliances inevitably followed.
The silk trade flowered with the ascent of the Roman Empire, with the Chinese initially giving the silk as gifts to the Roman-Asian governments.
Seven thousand miles long, the Silk Road spanned China, Central Asia, Northern India, and the Parthian and Roman empires. “It connected the Yellow River Valley to the Mediterranean Sea and passed through places such as Chinese cities Kansu and Sinkiang and present-day countries Iran, Iraq and Syria.”
Exchange of goods
- Northwestern Indians living along the Ganges River played the role of enterprising middlemen in the China-Mediterranean route, resulting in this exchange:
- Chinese silk was traded with the Indians’ precious stones and metals (jade, gold, silver).
- Indians traded the silk with the Roman Empire.
- Eventually, the Chinese would sell silk for medicines, perfumes, and slaves, too.
- The Chinese exchanged silk for the Russians’ fur.
Social exchange
- Silk trade increased the presence of foreign merchants in China, exposing both the Chinese and foreigners to each other’s cultures and religions.
- Buddhism spread from India to China.
Eventually, the Silk Road trade declined when overseas trade became popular.
***
The student paper, however, failed to mention something else that is even more important:
Manila Galleon Trade (Manila-Acapulco trade)
The Manila Galleon Trade, of which Spanish-colonized Manila was a major nexus together with Acapulco, Mexico, is a direct offshoot of the great Colombian exchange. It officially started in Manila in 1565, establishing the Philippine capital as a capital of world trade as well. Several history authors are even one in agreement that it is the Ground Zero of globalization because it was in early modern-age (Spanish colonial era) Manila where all cultures of practically every latitude in the globe got connected by trade, including the Silk Road, an unprecedented event in history.
By the time the Manila-Acapulco/galleon trade ceased operations, it was 1815.
Reference: "Colonial Counterpoint: Music in Early Modern Manila" by D. R. M. Irving (2010)
***
Now, how did outsourcing and globalized free trade (tariff/quota/duty-free trade) came to be? Blame it on the following theories.
1. Mercantilism (1500s–1700s)
Think of countries like players in a game trying to collect gold and win. Governments believed the way to get rich was to sell more to others (exports) and buy less (imports), so they put high taxes (tariffs) on foreign goods and encouraged local production.
What it contributed: It got countries thinking seriously about international trade as a tool for national wealth. But it was very competitive and restrictive—more like “win-lose” than cooperation.
2. Adam Smith – Absolute Advantage (1776)
Now imagine someone says: “Why not just let each country do what it’s best at?” If one country can make cloth faster, and another can make wine faster, each should specialize and trade. Both sides can end up with more goods overall.
This introduced the idea that trade can benefit everyone, not just one winner. This softened the strict “protect everything” mindset of mercantilism.
3. David Ricardo – Comparative Advantage (1800s)
Ricardo took it one step further with a clever insight: Even if a country is worse at making everything, it should still specialize in what it’s least bad at. Then trade for the rest.
Simple example: If Country A is better at both rice and cars, but much better at cars, it should focus on cars and import rice.
This made the case for global specialization much stronger. It showed that trade makes sense for all countries, not just the most efficient ones. This is a key foundation for modern free trade.
4. Eli Heckscher & Bertil Ohlin – Factor Endowments (1920s)
Now shift the focus from “skill” to resources: Countries export goods that use what they have a lot of:
Lots of labor → labor-intensive goods (e.g., garments)
Lots of capital → capital-intensive goods (e.g., machinery)
This explained why different countries specialize differently. This helped justify global production patterns—like why manufacturing moved to countries with cheaper labor.
5. Raymond Vernon – Product Life Cycle (1960s)
Now think of a product like a smartphone:
1. New product stage – invented in a rich country
2. Growth stage – demand rises, production expands
3. Mature stage – becomes standardized, cost matters more
As the product matures, companies move production to cheaper countries. Eventually, those countries export the product back to the original country.
This directly explains outsourcing and offshoring: Companies chase lower costs. Production spreads across countries.
These ideas didn’t appear randomly—they build on each other:
Mercantilism → Trade matters (but in a restrictive way)
Adam Smith → Trade can benefit both sides
Ricardo → Everyone can benefit from specialization
Heckscher–Ohlin → Specialization depends on resources
Vernon → Production moves globally over time
The result: Countries specialize. Companies look for the best and cheapest places to produce. Governments reduce barriers (tariffs, quotas). Goods, services, and jobs start moving across borders.
Why this leads to outsourcing and free trade? Because these theories collectively argue that: it’s efficient to produce where costs are lowest; it’s beneficial to trade instead of produce everything locally; it’s logical for companies to move production globally.
That’s essentially modern globalization: Outsourcing = applying cost efficiency globally. Free trade = removing barriers so this system works smoothly.
Reference: Hill, Charles L. W., 2006, International Business 6th ed., McGraw Hill Companies Inc.
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