Question

The origins of the current global economic system are found in the late 1400s, when China was the world leader in the production and export of goods such as silk. The result of this position created what problem that fostered European exploration of the Americas?

Answer 1

The origins of the current global economic system are found in the late 1400s, when China was the world leader in the production and export of goods such as silk. The result of this position created trade deficit, with exports vastly exceeding imports.

Trade deficit means that a country imports a greater value than it exports. On the contrary, if a country exports more products than it imports, it has a trade surplus.

At that time, China used to export great quantities of manufactured goods.