kalmar nyckel · kalmar nyckel tall ship of delaware enlightened self-interest definition:...

W O R L D T R A D E C A R D

KALMAR NYCKELTALL SHIP OF DELAWARE

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

The Kalmar Nyckel’s historic significance rivals that of the Mayflower. In 1638, she brought Peter Minuit and the first permanent European settlers to the Delaware Valley. The

Kalmar Nyckel was instrumental in establishing the colony of New Sweden. A commercial enterprise that reached across

the Atlantic, New Sweden competed in an international marketplace and centered on the lucrative fur trade.



The international fur trade of the 17th century helped connect Europe and North America into one commercial market. The efficiencies of sailing vessels by the 16th century made voyages across the Atlantic practical and cost effective. The demand for fur – and especially beaver pelts for men’s hats – provided European entrepreneurs with incentive. The demand for iron implements and other European trade goods by Native Indians of the Eastern Seaboard gave Native peoples incentive to join the international marketplace. This incentive led Native tribes to use their local knowledge and special skills in trapping beaver and to welcome European nations who wanted to establish trading colonies. The near extinction of the European beaver and its ready availability in North America meant that the supply had shifted not just internationally but across a sizeable portion of the globe.

International Fur Trade

A GLOBAL MARKET

Drawing by Eric Appelgarth, Kalmar Nyckel’s hull as she might have looked on the 1638 Expedition to New Sweden


Enlightened Self-Interest

Definition: “Choice is the decision made or course of action taken when faced with a set of alternatives.” In economic terms, “a choice is the alternative that best satisfies a person’s economic want. It is a decision that is made between two or more possibilities.”

Our lives are shaped by the choices we make – and the consequences that flow from those decisions. We make choices all the time, big and small, left or right, deliberately or in haste, consciously or reflexively – whether we are aware of them or not.

Economics helps us to think about the choices we make, and whether we are making decisions that are based in our “enlightened self-interest.” Enlightened self-interest is a fancy way of saying that we are aware of the alternatives we face and that we make decisions based on what is best for us. Any understanding of what is in a person’s self-interest must include considerations of others and their interests as well as the notion of deferred gratification – where short-term benefits are given up in order to gain the most long-term benefits.

CHOICE


essential Question: How does self-interest influence choices?

Image: “Choices – Which Way to Go?”

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

“Doi

ng W

ell B

y D

oing

Goo

d” –

oft

en c

alle

d th

e m

erch

ant’s

gol

den

rule

– is

an

exp

ress

ion

that

cap

ture

s th

e w

ay o

ne’s

indi

vidu

al s

elf-i

nter

est m

ust ta

ke in

to

acco

unt th

e in

tere

sts

of o

ther

peo

ple.

The

exp

ress

ion

impl

ies

that

suc

cess

ful

com

mer

cial

rel

atio

nshi

ps a

re d

epen

dent

on

trus

t, h

ones

ty, a

nd fa

ir de

alin

g.

Econ

omic

s C

onte

nt S

tand

ard:

One

The

peac

eful

man

ner

in w

hich

the

col

ony

of N

ew S

wed

en w

as fo

unde

d in

Del

awar

e in

Mar

ch o

f 1638 is

a c

lass

ic c

ase

of e

nlig

hten

ed s

elf-

inte

rest

. Fo

r th

e Sw

edes

on

one

hand

, G

over

nor

Pete

r M

inui

t an

d hi

s co

unci

l und

erst

ood

that

pea

cefu

l rel

atio

ns w

ith t

he lo

cal L

enap

e In

dian

s w

ere

cruc

ial f

or h

is li

ttle

col

ony

to s

ucce

ed. O

n th

e ot

her

hand

, th

e Nat

ive

Am

eric

an le

ader

s –

Indi

an s

ache

ms

Mat

taho

rn,

Mita

sem

int,

Eru

Pac

ken,

Mah

amen

, an

d Chi

ton

– m

ade

the

cons

ciou

s ch

oice

to

allo

w t

he S

wed

es t

o bu

ild a

tra

ding

pos

t (F

ort

Chr

istin

a) a

nd

foun

d a

colo

ny o

n la

nds

unde

r th

eir

cont

rol.

Bot

h si

des

unde

rsto

od t

hat

a co

mm

erci

al r

elat

ions

hip

wou

ld w

ork

to t

heir

mut

ual b

enefi

t. E

qual

ly im

port

ant,

bot

h un

ders

tood

tha

t an

al

lianc

e w

ith t

he o

ther

wou

ld s

tren

gthe

n th

eir

indi

vidu

al p

ositi

ons

agai

nst

othe

r Eu

rope

an a

nd N

ativ

e Am

eric

an p

ower

s –

nam

ely,

the

D

utch

, th

e En

glis

h, a

nd t

he S

usqu

ehan

nock

. Bot

h th

e Sw

edes

and

th

e Le

nape

wer

e th

inki

ng a

bout

how

to

max

imiz

e th

eir

long

-ter

m

bene

fits

and

wer

e co

nsci

ous

of “

doin

g w

ell b

y do

ing

good

” –

even

th

ough

the

y di

dn’t

use

that

exa

ct p

hras

e.

“Mou

ntai

n ci

mbe

rs d

epen

d on

‘Tru

st’ a

nd ‘T

eam

wor

k’”

“Nav

igat

ing

with

a C

ompa

ss”

– M

akin

g an

Info

rmed

Dec

isio

n

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

1



Gifts of Nature

Definition: “Natural Resources are gifts of nature that are used to produce goods and services. They are present without human intervention. Some examples are land, trees, fish, oil, mineral deposits, soil, and climatic conditions.” Animals and plants, oceans and rivers, rocks and trees, are some of the important natural resources associated with the 1638 Expedition.

The beaver is one of nature’s wonders. The beaver belongs to the largest group of mammals, called Rodents, which have large incisor teeth for “gnawing” and include chipmunks, squirrels, porcupines, mice, and rats. There are two species of beaver – the European (Castor fiber) and the North American (Castor canadensis) – which are very similar in look but have different genes. Beavers were sought for their lustrous fur coats, which in winter achieved astounding densities of up to 23,000 hairs per square centimeter.

NATURAL RESOURCES

essential Question: How might beavers be considered a “natural resource,” their skins a kind of “commodity money,” and their fur a finished “product”?

Image: North American Beaver

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

Tree

s w

ere

an im

port

ant

“nat

ural

res

ourc

e” in

New

Sw

eden

. Man

y va

rietie

s of

oa

k, p

ine,

bee

ch, a

nd a

sh a

re n

atur

al t

o D

elaw

are,

and

the

se p

rovi

ded

the

raw

m

ater

ial f

or m

akin

g Fo

rt C

hris

tina

and

the

first

tw

o lo

g-ca

bin

stru

ctur

es in

the

New

Wor

ld.

Econ

omic

s C

onte

nt S

tand

ard:

One

Bea

ver

skin

s –

or p

elts

– w

ere

the

raw

mat

eria

l mos

t va

lued

by

the

New

Sw

eden

Com

pany

offi

cial

s. U

ntil

the

16

th c

entu

ry,

beav

er h

ad

been

con

side

red

an in

ferio

r fu

r in

the

wor

ld o

f Eu

rope

an fas

hion

, be

neat

h sa

bles

, er

min

es,

and

mar

tens

. S

udde

nly,

beg

inni

ng in

th

e la

te 1

50

0s,

bea

ver

hats

bec

ame

the

mos

t im

port

ant

elem

ent

in m

en’s

fas

hion

s. A

ny g

entle

man

of an

y st

andi

ng h

ad t

o be

see

n w

earin

g a

felte

d be

aver

hat

, a

fash

ion

stat

emen

t th

at la

sted

for

ove

r tw

o hu

ndre

d ye

ars.

As

a re

sult,

the

Eur

opea

n be

aver

(C

asto

r fib

er)

was

tra

pped

in

to e

xtin

ctio

n by

abo

ut 1

60

0,

exce

pt in

the

rem

otes

t ar

eas

of

Rus

sia.

With

dem

and

for

beav

er in

crea

sing

dra

mat

ical

ly,

fur-

trad

ing

com

pani

es s

hift

ed t

heir

focu

s to

the

Am

eric

an (

Cas

tor

cana

dens

is)

varie

ty. Th

e se

arch

for

new

sou

rces

of be

aver

fur

hel

ps e

xpla

in t

he

birt

h of

New

Sw

eden

as

a co

mm

erci

al c

olon

y an

d its

inte

rest

in

esta

blis

hing

a fur

-tra

ding

cen

ter

in t

he D

elaw

are

Riv

er V

alle

y.

Fort

Chr

istin

a S

tate

Par

k, K

alm

ar N

ycke

l Fou

ndat

ion

Moo

nlig

ht o

n B

eave

r Po

nd

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

2



People Power

Definition: “Human resources are the health, education, experience, training, skills, and values of people. The number of people available for work and the hours they work make up one dimension of human resources” – a quantitative dimension. “Another dimension is people’s human capital. Human capital refers to the quality of human resources which can be improved through investments in education, training, and health.”

“Work is the effort applied to achieve a purpose or result, often for pay; skills and knowledge put to use to get something done; employment at a job or in a position; occupation, profession, business, trade, craft, etc.”

HUMAN RESOURCES

essential Question: What human capital did the Native Americans possess that was important to the Europeans?

Image: Wood Engraving of Swedish and Lenape Traders, Made in Sweden, 1702

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

Saue

rkra

ut –

a k

ind

of fe

rmen

ted

cabb

age

load

ed w

ith v

itam

in C

– s

igni

fican

tly

impr

oved

the

die

t an

d he

alth

of t

he K

alm

ar N

ycke

l’s s

ailin

g cr

ew, s

oldi

ers,

and

se

ttle

rs. T

his

is a

sm

all b

ut im

port

ant ex

ampl

e of

the

kin

d of

inve

stm

ent in

hu

man

res

ourc

es tha

t ca

n be

mad

e to

impr

ove

the

qual

ity o

f “hu

man

cap

ital.”

Econ

omic

s C

onte

nt S

tand

ard:

One

In t

he c

olon

y of

New

Sw

eden

(1

63

8-1

65

5),

Eur

opea

n co

loni

sts

and

Nat

ive

peop

les

wor

ked

to p

rodu

ce g

oods

and

ser

vice

s. M

ost

of

thei

r w

ork

was

foc

used

on

the

fur

trad

e, w

hich

ulti

mat

ely

“pro

duce

d”

anim

al p

elts

for

sal

e in

Eur

opea

n m

arke

ts.

By

the

17

th c

entu

ry,

mos

t of

the

fur

acq

uire

d in

Nor

th A

mer

ican

was

use

d in

the

mak

ing

of fel

ted

beav

er h

ats.

Two

nativ

e tr

ibes

, th

e Le

nape

(al

so k

now

n as

the

Del

awar

es)

and

Sus

queh

anno

ck (

also

cal

led

the

Min

quas

), d

omin

ated

the

fur

tr

ade

in t

he D

elaw

are

Valle

y. T

hey

exce

lled

at h

untin

g an

d tr

appi

ng

beav

er a

nd o

ther

fur

-bea

ring

anim

als

such

as

otte

rs a

nd w

ease

ls,

whi

ch m

ade

them

ext

rem

ely

valu

able

as

a hu

man

res

ourc

e.

The

Nat

ive

peop

les

then

tra

ded

with

the

Sw

edes

for

all

kind

s of

fini

shed

Eu

rope

an p

rodu

cts

that

the

y co

uld

not

mak

e fo

r th

emse

lves

–

espe

cial

ly ir

on a

nd c

oppe

r to

ols,

pot

s, a

nd o

ther

met

al im

plem

ents

as

wel

l Duf

fel c

loth

, gl

ass

bead

s, g

old

chai

ns,

and

mirr

ors.

Sai

ling

Cre

w A

boar

d M

oder

n K

alm

ar N

ycke

l

Pain

ting

by L

ars

Gill

is, Th

e K

ing’

s M

esse

nger

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

3



Tools, Machines & Equipment

Definition: “Capital resources – also called capital goods – are the man-made goods used to produce goods and services. They include such things as buildings, equipment, machinery, roads, dams, and tools. Capital resources are goods produced and used to make other goods and services.”

• Tools are hand-held implements, such as a hammer, saw, or file, which perform or facilitate mechanical operations.

• Simple Machines are devices for altering the magnitude or direction of a force. There are six basic types – levers, wheels & axels, pulleys, screws, wedges, and inclined planes.

• Equipment is any set of tools, devices, kit, etc, assembled for a specific purpose, such as a carpenter’s toolbox and tools.

CAPITAL RESOURCES

essential Question: How do capital resources help people produce more goods and services?

Photograph: Kalmar Nyckel at Sea, Andrew Hanna, Kalmar Nyckel Foundation

Kal

mar

Nyc

kel’s

Com

plex

Rig

and

Fig

htin

g To

p, A

ndre

w H

anna

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

Sim

ple

mac

hine

s –

a w

indl

ass,

cap

stan

, whi

psta

ff, a

nd tw

o bi

lge

pum

ps –

wer

e ca

rrie

d on

boar

d Kal

mar

Nyc

kel t

o he

lp the

sai

ling

crew

with

the

ir w

ork.

Econ

omic

s C

onte

nt S

tand

ard:

One

The

larg

est an

d m

ost im

port

ant ca

pita

l res

ourc

e fo

r th

e co

lony

of N

ew

Sw

eden

was

the

Kal

mar

Nyc

kel i

tsel

f. O

cean

-goi

ng s

ailin

g ve

ssel

s w

ere

som

e of

the

larg

est an

d m

ost co

mpl

ex p

iece

s of

equ

ipm

ent ev

er

mad

e. T

he e

ntire

col

onia

l ent

erpr

ise

was

dep

ende

nt o

n th

e ab

ility

of

peop

le to

sail

the

Kal

mar

Nyc

kel b

ack

and

fort

h ac

ross

the

Atla

ntic

, fro

m S

wed

en to

the

Del

awar

e Va

lley,

car

ryin

g al

l the

set

tlers

, sup

plie

s,

and

trad

e go

ods.

The

orig

inal

Kal

mar

Nyc

kel c

arrie

d te

n sa

ils a

nd a

com

plex

rig

tha

t co

nsis

ted

of e

ight

mile

s of

rop

e an

d hu

ndre

ds o

f blo

cks.

With

a s

parr

ed

leng

th o

f 141 fe

et (

from

tip

of b

owsp

rit to

ster

n ga

llery

), K

alm

ar N

ycke

l m

easu

red

93 fe

et o

n de

ck. S

he w

as a

bout

25 fe

et w

ide

(bea

m),

and

he

r m

ain

mas

t st

ood

104 fe

et h

igh

from

the

wat

erlin

e –

or a

bout

six

st

orie

s ta

ll. A

new

cla

ss o

f ves

sel c

alle

d a

Dut

ch P

inna

ce, s

he c

ould

op

erat

e as

eith

er a

n ar

med

mer

chan

tman

or sm

all w

arsh

ip. S

tout

ly b

uilt

and

rem

arka

bly

seaw

orth

y, K

alm

ar N

ycke

l nee

ded

a cr

ew o

f abo

ut 3

0

peop

le to

sail

her ac

ross

the

Atla

ntic

.

Kal

mar

Nyc

kel i

n D

elaw

are

Bay

, A

ndre

w H

anna

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

4



Invention, Innovation & Infrastructure

Definition: Transportation is the means by which people and things are carried from one place to another. Forms of transportation are “capital resources” that facilitate the movement of goods and services. Transportation connects all aspects of the economy, including access to resources, production, trade, distribution, and information. Examples of transportation include people walking on foot, horses, ships, railroads, and airplanes.

Transportation facilities and installations are an important part of a community’s infrastructure. As the means of transportation become more advanced, the cost of moving goods from place to place decreases.

TRANSPORTATION

essential Question: How do advancements in transportation dramatically transform trade and promote economic growth?

Image: View of Atlantic Seaboard from Kalmar Nyckel, Andrew Hanna, Kalmar Nyckel Foundation

Sw

edes

Roc

ks, 1

89

8, K

alm

ar N

ycke

l Fou

ndat

ion

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

“The

Roc

ks”

on th

e no

rth

bank

of t

he C

hris

tina

Riv

er w

ere

a na

tura

l res

ourc

e th

at

Pete

r Min

uit u

sed

as a

wha

rf fo

r off-

load

ing

carg

o fro

m th

e Kal

mar

Nyc

kel a

s he

es

tabl

ishe

d th

e se

ttle

men

t of F

ort C

hris

tina,

in p

rese

nt-d

ay W

ilmin

gton

, Del

awar

e.

This

is a

n un

usua

l exa

mpl

e of

tran

spor

tatio

n in

frast

ruct

ure

that

resu

lted

from

in

nova

tion

– he

re, u

sing

a p

re-e

xist

ing

natu

ral r

esou

rce

inst

ead

of a

man

-mad

e on

e.

Econ

omic

s C

onte

nt S

tand

ard:

Thr

ee

The

Kal

mar

Nyc

kel r

esul

ted

from

man

y in

vent

ions

and

inno

vatio

ns in

sh

ip d

esig

n an

d co

nstr

uctio

n th

at o

ccur

red

betw

een

1425 a

nd 1

625.

A tec

hnol

ogic

al m

arve

l for

her

day

, she

dep

ende

d on

infra

stru

ctur

e su

ch

as h

arbo

rs a

nd p

ort fa

cilit

ies

to tra

nspo

rt E

urop

eans

and

the

ir tr

ade

good

s be

twee

n Eu

rope

and

Nor

th A

mer

ica,

acr

oss

thre

e th

ousa

nd m

iles

of

stor

m-t

osse

d oc

ean.

Shi

ps rem

ain

an im

port

ant m

eans

of t

rans

port

atio

n.

Toda

y, 9

0%

of a

ll in

tern

atio

nal t

rade

is c

arrie

d by

shi

p.

• ‘In

vent

ion

is the

cre

atio

n of

a n

ew o

bjec

t or

pro

cess

.’ O

ne o

f the

te

chno

logi

cal i

nven

tions

tha

t m

ost si

gnifi

cant

ly c

ontr

ibut

ed to

the

“Tra

nspo

rtat

ion

Rev

olut

ion”

was

the

oce

an-g

oing

sai

ling

vess

el.

• ‘In

nova

tion

is c

hang

ing

or m

odify

ing

pre-

exis

ting

idea

s an

d pr

oduc

ts.’

For ex

ampl

e, la

rge,

thr

ee-m

aste

d, s

quar

e-rig

ged

sailing

ves

sels

wer

e a

new

way

to

harn

ess

the

pow

er o

f the

win

d ad

apte

d fro

m p

re-e

xist

ing

ship

des

igns

, allo

win

g sh

ips

to tra

vel a

cros

s oc

eans

.

• ‘In

fras

truc

ture

is the

set

of i

nter

conn

ecte

d el

emen

ts tha

t su

ppor

t th

e us

e of

inve

ntio

ns a

nd in

nova

tions

. Exa

mpl

es o

f tra

nspo

rtat

ion

infra

stru

ctur

e ar

e ro

ads,

brid

ges,

tun

nels

, can

als,

and

por

ts.’

Ligh

thou

ses

and

dock

s w

ere

two

cont

ribut

ions

tha

t im

prov

ed the

in

frast

ruct

ure

of s

eaw

ays

and

harb

ors.

Mod

ern

Con

tain

er S

hip

in R

otte

rdam

Har

bor

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

5



Craftsmen – Pre-Industrial Specialists

Definition: ‘Production is the process of manufacturing, growing, designing, or otherwise using productive resources to create goods or services used to satisfy a want.’ Before the Industrial Revolution (1750-1850), production usually depended on craftsmen to make goods for the market. “Craftsmen produce goods but do not divide their work. Each person produces his or her own good from the first step to the last. Craftsmen may share tools and equipment.”

‘Specialization is when people concentrate their production on fewer kinds of goods and services and produce a narrower range of goods and services than they consume.’ Instead of producing several goods, a group or business will concentrate on producing just one good – for example, beaver hats.

PRODUCTION

essential Question: How does specialization lead to greater productivity?

Image: Traditional Craftsman At Work

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

Nati

ve A

mer

ican

s of

ten

cont

ribut

ed to

the

felti

ng p

roce

ss b

y w

earin

g be

aver

sk

ins

as rob

es a

nd o

verc

oats

bef

ore

exch

angi

ng the

m w

ith E

urop

ean

trad

ers.

W

earin

g th

e be

aver

pel

ts h

elpe

d re

mov

e th

e gu

ard

hairs

, whi

ch m

eant

tha

t “w

orn”

pel

ts w

ere

cons

ider

ed m

ore

valu

able

tha

n “u

nuse

d” o

nes.

Econ

omic

s C

onte

nt S

tand

ard:

Thr

ee

Hat

ters

wer

e so

me

of the

mos

t hi

ghly

ski

lled

craf

tsm

en in

ear

ly-m

oder

n Eu

rope

, and

bea

ver ha

ts w

ere

the

mos

t di

fficu

lt an

d tim

e co

nsum

ing

type

of

hat

to

mak

e. T

he p

roce

ss o

f mak

ing

beav

er h

ats

requ

ired

thirt

y se

para

te

step

s an

d co

uld

take

as

long

as

seve

n ho

urs

of h

ands

-on

labo

r. Bea

ver

pelts

– the

ani

mal

ski

ns a

nd fu

r –

had

to b

e so

rted

, pre

pare

d, s

have

d,

cut, a

nd s

hape

d. O

ne o

f the

mos

t tim

e-co

nsum

ing

and

diffi

cult

step

s in

the

pro

cess

was

rem

ovin

g th

e co

arse

“gu

ard

hairs

” –

whi

ch h

ad to

be

pluc

ked

indi

vidu

ally

usi

ng a

pai

r of

tw

eeze

rs –

to

expo

se the

sof

t ha

irs o

f th

e un

derc

oat. A

fter th

at, t

he fu

r w

as s

hear

ed fr

om the

pel

t, b

efor

e be

ing

“car

ded,

wei

ghed

, bow

ed, b

ason

ed, p

lank

ed, b

lock

ed, t

rimm

ed, d

yed,

st

iffen

ed, s

team

ed, i

rone

d, b

rush

ed, l

ined

, and

fini

shed

.”*

This

pro

duce

d fe

lted

beav

er fu

r th

at c

ould

the

n be

mad

e in

to a

hat

.

The

phra

se “M

ad a

s a

Hatt

er” co

mes

from

the

ear

ly 1

8th

cen

tury

, whe

n m

ercu

ry w

as a

dded

as

a st

ep in

the

felt-

mak

ing

proc

ess.

Unf

ortu

nate

ly,

the

com

bina

tion

of h

eat an

d st

eam

in the

felt-

mak

ing

proc

ess

crea

ted

mer

cury

vap

ors

whi

ch p

rove

d ru

inou

s to

the

hat

ter’s

hea

lth. I

nhal

ing

the

mer

cury

vap

ors

over

pro

long

ed p

erio

ds le

d to

mer

cury

poi

soni

ng,

whi

ch c

ause

d br

ain

and

nerv

e da

mag

e. M

enta

l det

erio

ratio

n an

d ot

her

sym

ptom

s, in

clud

ing

unco

ntro

llabl

e sh

akes

and

a s

huffl

ing

gate

, gav

e ris

e to

the

com

mon

exp

ress

ion

that

som

eone

was

“m

ad a

s a

hatt

er.”

Felte

d B

eave

r H

at, Ty

pica

l of M

en’s

Fas

hion

, 1

7th

-Cen

tury

Boy

Wea

ring

Trad

ition

al B

eave

r Hat

, Kal

mar

Nyc

kel F

ound

atio

n

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

6

* Jo

hn H

. H

awki

ns,

His

tory

of t

he W

orsh

ipfu

l Com

pany

, of

the

Art

or

Mis

ery

of F

eltm

aker

s of

Lon

don

(19

17

)



Special Skills

Definition: “Specialization occurs when a group or individual produces a smaller range of goods and services than they consume. For example, teachers specialize in providing education.” Science teachers specialize in providing science education. Some science teachers specialize in biology or chemistry or physics.

“Interdependence occurs when people rely on other people to get the goods and services they want. For example, teachers usually do not cut their own hair or repair their own cars. They depend on hair stylists and mechanics for these services. A country might have resources to produce cell phones and microwave ovens. It decides to specialize. It can produce cell phones at a lower cost than it can produce microwave ovens.”

SPECIALIZATION & INTERDEPENDENCE

essential Question: How does specialization make people interdependent?

Image: Kalmar Nyckel’s Modern Crew at Work, Andrew Hanna, Kalmar Nyckel Foundation

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

7

• H

endr

ick

Huy

gen,

Com

mis

sary

& T

rade

Adv

isor

•

And

ress

Luc

asse

n, In

dian

Inte

rpre

ter &

Tra

de A

dvis

or

For th

e Na

tive

Len

ape

and

Susq

ueha

nnoc

k o

Sac

hem

s –

trib

al le

ader

s sp

ecia

lizin

g in

soc

ial a

nd

cultu

ral a

ffairs

o C

hief

s –

trib

al le

ader

s sp

ecia

lizin

g in

war

fare

o H

unte

rs –

men

who

spe

cial

ized

in h

untin

g an

d tr

appi

ng

beav

er a

nd o

ther

fur-b

earin

g an

imal

s

o S

kinn

ers

– w

omen

who

spe

cial

ized

in s

kinn

ing

and

clea

ning

dea

d an

imal

s

Pain

ting

by L

ars

Gill

is, N

ew S

wed

en F

amily

Far

mst

ead

Ever

ywhe

re o

ne lo

oks

in the

his

tory

of t

he N

ew S

wed

en c

olon

y, o

ne s

ees

diffe

rent

peo

ple

with

spe

cial

ski

lls h

andl

ing

spec

ific

jobs

tha

t re

quire

spe

cial

ized

kno

wle

dge

and

expe

rienc

e. In

add

ition

, one

see

s al

l kin

ds o

f goo

ds a

nd s

ervi

ces

that

are

exc

hang

ed b

ased

on

spec

ializ

atio

n.

Som

e ex

ampl

es o

f spe

cial

izat

ion

incl

ude:

Fo

r Ne

w S

wed

eno

Sw

edis

h G

over

nmen

t &

Com

pany

Offi

cial

s

• C

hris

tina

Vasa

, Que

en o

f Sw

eden

•

Axe

l Oxe

nstie

rna,

Cha

ncel

lor of

Sw

eden

•

Kla

us F

lem

ing,

Adm

iral o

f Sw

edis

h Nav

y •

Sam

uel B

lom

mae

rt, N

ew S

wed

en C

ompa

ny D

irect

or

o O

ffice

rs &

Cre

w o

f th

e Ka

lmar

Nyc

kel

• J

an H

indr

icks

en v

an d

er W

ater

, Cap

tain

•

Mic

hel S

ymon

ssen

, Firs

t M

ate

• J

acob

San

delin

, Sec

ond

Mat

e •

Pet

er J

ohan

ssen

d, B

oats

wai

n •

Joh

an J

ochi

mss

en, G

unne

r •

Her

man

And

erso

n, S

ailo

r &

Car

pent

er

o C

olon

ial O

ffici

als

• P

eter

Min

uit, fi

rst G

over

nor of

New

Sw

eden

•

Mån

s Nils

son

Klin

g, C

omm

andi

ng O

ffice

r of

Sol

dier

s

Econ

omic

s C

onte

nt S

tand

ard:

Fou

r

“For

est

Finn

s” –

Sw

edis

h so

ldie

rs a

nd s

ettle

rs w

ho w

ere

Finn

ish

in o

rigin

–

used

the

ir sp

ecia

l ski

lls a

s ba

ckco

untr

y w

oods

men

to

mak

e th

e fir

st lo

g-ca

bin

stru

ctur

es in

the

Wes

tern

Hem

isph

ere

– a

stor

ehou

se a

nd a

bar

rack

s in

side

For

t Chr

istin

a.



“There’s Never Enough”Definition: “Scarcity is the condition of not being able to have all of the goods and services one wants. It exists because human wants for goods and services exceed the quantity of goods and services that can be produced using all available resources.”

“Students often think that scarce means rare, which is a misconception. Something can be rare but not scarce. For example, if a new rare metal is found but there is no use for it and no one wants it, the new metal is not scarce”.

“Scarcity can never be eliminated. There is never enough for everyone to have everything they want. Some allocation method must be used to determine who gets the scarce goods, services, or resources. Allocation methods include command, majority rule, contests, force, first-come-first-served, sharing equally, lottery, personal characteristics, and others. Another way of allocating scarce goods, services, and resources is price. As price rises, some consumers decide not to buy.”

SCARCITY

essential Question: How does scarcity lead to an increase in trade?

Image: “Running on Empty”

Beg

inni

ng in

the

late

1500s,

bea

ver

hats

bec

ame

an

esse

ntia

l fas

hion

sta

tem

ent

for

Euro

pean

gen

tlem

an

of a

ll ki

nds.

Thi

s fa

shio

n st

atem

ent

last

ed fo

r ov

er t

wo

hund

red

year

s an

d gr

eatly

incr

ease

d th

e de

man

d fo

r be

aver

fur,

whi

ch w

as t

he e

ssen

tial n

atur

al r

esou

rce

need

ed t

o pr

oduc

e th

e fe

lted

hats

. At

the

sam

e tim

e,

beav

ers

wer

e tr

appe

d in

to e

xtin

ctio

n in

Eur

ope,

exc

ept

in t

he r

emot

est

regi

ons

of R

ussi

a. A

s a

cons

eque

nce,

th

e Eu

rope

an s

uppl

y of

thi

s va

luab

le n

atur

al r

esou

rce

decr

ease

d dr

amat

ical

ly.

This

mad

e be

aver

fur

both

rar

e an

d sc

arce

in E

urop

ean

mar

kets

. Bec

ause

men

wan

ted

thes

e ha

ts, th

ey

wer

e w

illin

g to

pay

hig

her

and

high

er p

rices

for

this

pr

estig

ious

com

mod

ity.

This

situ

atio

n in

the

Eur

opea

n be

aver

hat

mar

ket

had

two

rela

ted

but

diffe

rent

out

com

es. Fi

rst,

the

pr

ice

of b

eave

r ha

ts in

crea

sed

sign

ifica

ntly

. As

an

exam

ple,

Sam

uel P

epys

– a

n En

glis

h ge

ntle

man

w

ho k

ept

a fa

mou

s di

ary

– re

cord

ed o

n Ju

ne 2

7,

A B

eave

r Lo

dge

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

Bric

ks w

ere

a so

ught

-afte

r pr

oduc

t m

ade

in E

urop

e bu

t no

t in

Nor

th A

mer

ica

durin

g th

e 17th

cen

tury

. The

se b

ricks

wer

e sc

arce

in the

New

Wor

ld. P

eter

M

inui

t un

ders

tood

thi

s sc

arci

ty, w

hich

is w

hy h

e br

ough

t 500 b

ricks

on

the

first

vo

yage

to

New

Sw

eden

in 1

638.

Econ

omic

s C

onte

nt S

tand

ard:

Thr

ee

1661, th

at h

e pa

id 4

pou

nds

& 8

shi

lling

s fo

r a

new

be

aver

hat

(th

e eq

uiva

lent

of 1

8 m

onth

s w

ages

for

the

com

mon

wor

king

man

or

wom

an).

Sec

ondl

y,

Euro

pean

ent

repr

eneu

rs b

egan

to

look

for

new

so

urce

s of

nat

ural

res

ourc

es, w

hich

the

y fo

und

in

abun

danc

e in

Nor

th A

mer

ica.

The

tra

nsat

lant

ic s

earc

h fo

r be

aver

enc

oura

ged

Euro

pean

s –

both

indi

vidu

al

entr

epre

neur

s an

d go

vern

men

ts –

to

deve

lop

colo

nies

in

Nor

th A

mer

ica.

Th

ese

colo

nies

sec

ured

acc

ess

to

wha

t w

as s

een

as a

vita

l nat

ural

res

ourc

e in

ord

er t

o in

crea

se g

loba

l tra

de.

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

8



Gains From Exchange

Definition: Trade occurs when goods and services are exchanged for other goods or services or for money. Trade is considered a voluntary exchange, which “is based on the fact that both sides expect to gain from trade.” In this way, trade is mutual – both sides get something they each consider of value. If it were not mutual, one side or the other – or both sides – would not agree to trade.

Gains from trade occur from ‘the increased output resulting from trade; with trade, each individual, region, or nation is able to concentrate on producing goods and services that it produces efficiently, while trading to obtain goods and services that it does not produce.’

TRADE

essential Question: Why do people trade?

Image: Stanley Arthurs, The Landing of the Swedes and Finns, Courtesy University Museums, University of Delaware, Gift of Mrs. Joseph S Wilson, 1967

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

Toba

cco

was

ano

ther

nat

ural

reso

urce

that

the

New

Sw

eden

col

ony

hope

d to

ob

tain

for t

rade

. Tob

acco

was

indi

geno

us to

the

Amer

icas

, and

by

abou

t 160

0 it

had

beco

me

extr

emel

y po

pula

r in

Euro

pe. T

obac

co w

as g

row

n in

the

Del

awar

e Va

lley,

but

it n

ever

bec

ame

an im

port

ant p

art o

f the

eco

nom

y as

it d

id in

the

Mar

ylan

d an

d Vi

rgin

ia c

olon

ies.

Econ

omic

s C

onte

nt S

tand

ard:

Fou

r

The

fur tr

ade,

whe

re S

wed

es e

xcha

nged

fini

shed

Eur

opea

n pr

oduc

ts

with

the

Len

ape

and

Sus

queh

anno

ck p

eopl

es fo

r an

imal

hid

es, w

as

impo

rtan

t to

bot

h si

des.

The

exc

hang

e w

as m

utua

l in

that

bot

h gr

oups

–

the

Sw

edes

and

the

Nat

ive

Am

eric

ans

– re

ceiv

ed s

omet

hing

tha

t ea

ch c

onsi

dere

d of

val

ue. E

urop

eans

had

an

exce

ss o

f iro

n an

d ot

her

good

s th

at c

ould

be

mad

e ch

eapl

y. T

he N

ativ

e Am

eric

ans

wer

e hi

ghly

sk

illed

at tr

appi

ng b

eave

r an

d ot

her fu

r-bea

ring

anim

als,

whi

ch to

them

w

ere

plen

tiful

and

eas

ily o

btai

ned.

The

Euro

pean

s w

ante

d be

aver

, on

one

hand

, but

did

n’t ha

ve the

ski

ll,

know

ledg

e, o

r ex

perie

nce

to tra

p th

em e

ffect

ivel

y. O

n th

e ot

her ha

nd,

the

Indi

ans

did

not kn

ow h

ow to

mak

e iro

n im

plem

ents

, clo

th fa

bric

, or

man

y ot

her fin

ishe

d go

ods

that

wer

e pr

oduc

ed in

abu

ndan

ce in

Eur

ope.

The

fur tr

ade

betw

een

the

Sw

edes

and

the

Nat

ive

Am

eric

ans

is a

cl

assi

c ca

se o

f “ga

ins

from

tra

de.” E

ach

grou

p, fr

om d

iffer

ent co

ntin

ents

an

d va

stly

diff

eren

t ci

rcum

stan

ces

and

cultu

res,

con

cent

rate

d on

pr

oduc

ing

good

s an

d se

rvic

es tha

t it

prod

uced

effi

cien

tly, w

hile

tra

ding

to

obt

ain

good

s an

d se

rvic

es tha

t it

did

not pr

oduc

e.

Trac

king

Glo

bal S

tock

Mar

kets

“Len

ape

Fam

ily o

f the

Low

er D

elaw

are,

” by

Pet

er L

inde

strö

m, 1

654

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

9



“Show Me The Wampum”

Definition: “Money is anything widely accepted as final payment for goods and services. All kinds of items have been used as money through-out history, and almost anything can serve as money so long as people are willing to accept it in exchange for goods and services. For example, tobacco, nails, farm goods, fish, salt, furs, and cows have served as money. When goods are used as money it is called commodity money.”

“Money is a medium of exchange. It acts as a go-between to make things easier to buy. Sellers agree to accept it in exchange for a good or service. For anything to serve as a medium of exchange it must be:

• Durable – lasts long• Portable – easy to carry• Divisible – can make change• Stable in Value – doesn’t lose its value• Scarce – not enough available as wanted• Acceptable – general agreement between and among parties.”

MONEY

essential Question: What is money?

Image: Sweden’s Modern Currency, called Krona or Kronor when plural

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

Dut

ch g

uild

ers

and

Swed

ish

riksd

aler

s –

Euro

pean

cur

renc

ies

– w

ere

som

etim

es u

sed

as a

com

mon

med

ium

of e

xcha

nge

by the

Sw

edes

, Dut

ch,

and

Nat

ive

Am

eric

ans

in c

olon

ial N

ew S

wed

en. B

eave

r sk

ins

wer

e al

so u

sed

as

a fo

rm o

f “co

mm

odity

mon

ey” w

hen

wam

pum

was

not

ava

ilabl

e.

Econ

omic

s C

onte

nt S

tand

ard:

Thr

ee

Indi

an w

ampu

m (

also

kno

wn

as s

ewan

t) –

a k

ind

of “co

mm

odity

mon

ey”

– se

rved

as

the

com

mon

“m

ediu

m o

f exc

hang

e” in

New

Sw

eden

. W

ampu

m a

re s

acre

d sh

ell b

eads

of t

he L

enap

e pe

ople

and

oth

er

East

ern

Woo

dlan

d tr

ibes

. Tub

ular

she

lls w

ere

fash

ione

d in

to s

trin

gs

of w

ampu

m b

eads

or be

lts. N

ativ

e tr

ibes

use

d w

ampu

m to

cele

brat

e tr

eatie

s or

cer

emon

ial e

vent

s, a

nd fo

r ex

chan

ge in

per

sona

l soc

ial

tran

sact

ions

suc

h as

mar

riage

. By

the

17th

cen

tury

, Nat

ive

trib

es o

ften

used

wam

pum

as

a cu

rren

cy w

hen

trad

ing

with

Eur

opea

n co

loni

sts.

O

rigin

ally

, wam

pum

ref

erre

d ex

clus

ivel

y to

whi

te b

eads

mad

e fro

m the

in

ner sp

iral o

f the

cha

nnel

ed w

helk

she

ll. S

ewan

t re

ferr

ed to

purp

le

or b

lack

she

ll be

ads

mad

e fro

m q

uaho

g cl

amsh

ells

, whi

ch w

ere

rare

an

d m

ore

high

ly v

alue

d. T

he q

uaho

g cl

ams

wer

e fo

und

prim

arily

alo

ng

Long

Isla

nd a

nd N

arra

gans

ett Bay

. The

Len

ape

wor

d fo

r Lo

ng Is

land

is

Sew

anac

ky, r

eflec

ting

its c

onne

ctio

n to

the

dar

k w

ampu

m. E

urop

ean

colo

nist

s of

ten

used

the

wor

ds w

ampu

m a

nd s

ewan

t in

terc

hang

eabl

y,

thou

gh it

was

und

erst

ood

that

the

pur

ple

sew

ant be

ads

wer

e co

nsid

ered

ab

out tw

ice

as v

alua

ble

as the

whi

te w

ampu

m.

Purp

le-c

olor

ed Q

uaho

g C

lam

Bea

ded

Moc

casi

ns

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

10



Risks & RewardsDefinition: Incentive is anything that influences, encourages, or stimulates action.‘Economic incentives are the factors that motivate and influence behavior of individuals and organizations, including firms and government agencies. Prices, profit, and losses are important economic incentives in a market economy.’

When trying to understand whether incentives are sufficient to stimulate action, people often weigh the potential risks involved against the possible rewards.

• Risk is defined as “the possibility of suffering harm or loss.” Examples might include physical harm or loss of money.

• Reward is something “gained from work performed or service given.” Examples might include profit, pay, bonus, or recognition.

INCENTIVE

essential Question: How do incentives influence people’s behavior?

Image: Ludolf Bakhuizen, Dutch Merchants-Ships in a Storm, 1660, Courtesy Rijksmuseum, Amsterdam

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

The

Nati

ve T

ribes

– L

enap

e an

d Su

sque

hann

ock

– ha

d se

vera

l inc

entiv

es fo

r em

brac

ing

the

Sw

edes

and

the

ir tr

adin

g co

lony

of N

ew S

wed

en. B

esid

es the

Eu

rope

an tra

de g

oods

tha

t th

ey w

ante

d, the

Nat

ive

trib

es w

ere

look

ing

to fo

rge

allia

nces

. The

y w

ante

d pr

otec

tion

agai

nst ot

her,

stro

nger

Nat

ive

trib

es w

ho

mig

ht s

ubju

gate

the

m. T

hey

also

wan

ted

prot

ectio

n ag

ains

t ot

her Eu

rope

an

pow

ers,

esp

ecia

lly the

Eng

lish,

who

wer

e lik

ely

to b

ring

muc

h la

rger

set

tler

popu

latio

ns w

hich

wou

ld d

ispl

ace

the

Indi

ans

from

the

ir la

nd e

ntire

ly.

Econ

omic

s C

onte

nt S

tand

ard:

Thr

ee

The

colo

ny o

f New

Sw

eden

was

a h

igh

risk

ente

rpris

e th

at, if

it su

ccee

ded,

wou

ld b

ring

trem

endo

us r

ewar

ds.

Nav

igat

ing

the

Atla

ntic

Oce

an in

the

17th

cen

tury

was

a

maj

or r

isk

on it

s ow

n. O

nce

in N

orth

Am

eric

a, t

he

Sw

edis

h co

loni

sts

wou

ld h

ave

to e

stab

lish

peac

eful

re

latio

nshi

ps w

ith t

he lo

cal N

ativ

e tr

ibes

and

com

pete

w

ith o

ther

Dut

ch a

nd E

nglis

h co

loni

es t

hat

had

alre

ady

clai

med

the

Del

awar

e Va

lley.

The

sai

lors

, so

ldie

rs,

and

sett

lers

who

too

k an

act

ive

part

in t

he c

olon

ial

ente

rpris

e ris

ked

thei

r liv

es a

s w

ell a

s th

eir

fort

unes

.

The

fur

trad

e in

the

17th

cen

tury

cou

ld b

ecom

e ex

trem

ely

profi

tabl

e. W

ith P

eter

Min

uit’s

kno

wle

dge

of

the

Del

awar

e Va

lley

and

his

entr

epre

neur

ial s

kill,

the

New

Sw

eden

Com

pany

inve

stor

s co

uld

expe

ct t

o m

ake

Plot

ting

“Ris

k” a

nd “

Rew

ard”

on

a M

atrix

Gra

ph

a pr

ofit.

In a

dditi

on, th

e m

onar

chy

and

gove

rnm

ent

of

Sw

eden

wou

ld g

ain

enor

mou

s pr

estig

e by

ext

endi

ng

its e

mpi

re t

o Nor

th A

mer

ica.

As

an in

vest

or a

nd g

over

nor,

Min

uit

coul

d ex

pect

to

pro

fit p

erso

nally

if t

he c

olon

y pr

oved

suc

cess

ful.

The

sailo

rs a

nd s

oldi

ers

wer

e pa

id fo

r th

eir

labo

r, an

d fu

ture

set

tlers

cou

ld e

xpec

t to

ben

efit

from

impr

oved

w

orki

ng a

nd li

ving

con

ditio

ns in

the

New

Wor

ld.

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

11



Definition: Corporations are special legal organizations that promote the efficient conduct of business. The word “corporation” comes from “corpus,” the Latin word meaning “body of people.” Corporations are recognized by law as individual entities that have rights and responsibilities like real people. As business organizations, corporations have four common characteristics:

• Separate Legal Status – corporations operate as “artificial persons” in the eyes of the law and survive beyond the death of any one shareholder

• Limited Liability – a shareholder’s exposure to the losses of the corporation are limited to the value of the stock they own

• Transferable Shares – corporate shares, unless otherwise specified, are freely transferable from one person to another and may be bought and sold at will

• Centralized Management – corporations are generally governed by a “Board of Directors” which is elected by the shareholders

essential Question: What are the advantages of corporations?

Image: Original Shareholder Certificate from Stora Kopparberg Mine, dated June 16, 1288

Sharing the Risks & Rewards

BUSINESS ORGANIZATION– CORPORATIONS

The

Kalm

ar

Nyck

el’s

his

tori

c si

gnifi

cance

riv

als

that

of th

e M

ayflow

er. I

n 1

638, s

he

bro

ught

Pete

r M

inuit a

nd t

he

firs

t per

manen

t Euro

pea

n s

ettler

s to

the

Del

aware

Valle

y. T

he

Kalm

ar

Nyck

el w

as

inst

rum

enta

l in

est

ablish

ing t

he

colo

ny

of N

ew S

wed

en. A

com

mer

cial en

terp

rise

that

reach

ed a

cross

the

Atlanti

c, N

ew S

wed

en c

om

pet

ed in a

n

inte

rnati

onal m

ark

etpla

ce a

nd c

ente

red o

n t

he

pro

fita

ble

fur

trade.

Del

awar

e to

day

is k

now

n as

the

“co

rpor

ate

capi

tal o

f the

wor

ld.” O

ver 60%

of

the

wor

ld’s

For

tune

500 c

ompa

nies

are

inco

rpor

ated

in D

elaw

are,

whi

ch

has

a lo

ng h

isto

ry o

f cor

pora

te la

ws

and

cour

t ov

ersi

ght th

at h

ave

mad

e it

an

attr

activ

e pl

ace

for bu

sine

sses

.

Swed

en’s

Sto

ra K

oppa

rber

g (G

reat

Cop

per M

ount

ain)

Min

e is

the

old

est kn

own

com

mer

cial

cor

pora

tion

in the

wor

ld. L

ocat

ed in

Fal

un, S

wed

en, t

he m

inin

g op

erat

ion

obta

ined

a c

hart

er fr

om K

ing

Mag

nus

Erik

sson

in 1

347. S

hare

s fro

m

the

min

ing

oper

atio

n da

te a

s fa

r ba

ck a

s 1288. E

urop

e’s

larg

est co

pper

min

e fo

r a

thou

sand

yea

rs, S

tora

Kop

parb

erg

is a

UNES

CO

Wor

ld H

erita

ge S

ite. M

inin

g op

erat

ions

wer

e cl

osed

in 1

992, b

ut the

com

pany

stil

l exi

sts

toda

y.

Econ

omic

s C

onte

nt S

tand

ard:

One

The

New

Sw

eden

Com

pany

was

a c

omm

erci

al c

orpo

ratio

n fo

unde

d in

1637 b

y a

grou

p of

Dut

ch, S

wed

ish,

and

G

erm

an in

vest

ors.

The

Com

pany

was

cha

rter

ed b

y th

e Sw

edis

h go

vern

men

t as

a le

gal e

ntity

, had

its

own

Boa

rd

of D

irect

ors,

and

issu

ed tra

nsfe

rabl

e sh

ares

bas

ed o

n th

e va

lue

of the

fina

ncia

l con

trib

utio

ns m

ade

by e

ach

inve

stor

. Und

er the

lead

ersh

ip o

f Sam

uel B

lom

mae

rt,

Pete

r M

inui

t, a

nd A

xel O

xens

tiern

a, the

New

Sw

eden

Com

pany

pla

nned

to

expl

oit re

sour

ces

and

com

mer

cial

op

port

uniti

es in

Nor

th A

mer

ica.

It w

as p

atte

rned

afte

r an

d de

sign

ed to

com

pete

with

the

suc

cess

ful D

utch

Wes

t In

dia

Com

pany

, whi

ch h

ad b

een

foun

ded

in 1

621.

The

New

Sw

eden

Com

pany

est

ablis

hed

a tr

adin

g co

lony

ca

lled

New

Sw

eden

on

“uno

ccup

ied”

land

s al

ong

the

Min

ing

Map

of S

tora

Kop

parb

erg,

Fal

un, S

wed

en

Del

awar

e R

iver

, bet

wee

n th

e D

utch

set

tlem

ent of

New

Am

ster

dam

and

Eng

lish

clai

ms

in V

irgin

ia a

nd M

aryl

and.

Th

e New

Sw

eden

Com

pany

’s c

ompe

titio

n w

ith the

D

utch

Wes

t In

dia

Com

pany

for pr

imac

y in

the

Del

awar

e Va

lley

is a

mod

ern

stor

y. R

athe

r th

an s

impl

y th

e cl

ash

of tw

o Eu

rope

an Im

peria

l pow

ers,

it c

an b

e se

en a

s th

e m

aneu

verin

gs o

f tw

o m

ultin

atio

nal c

orpo

ratio

ns,

each

vyi

ng to

dom

inat

e an

impo

rtan

t se

ctor

of t

he

inte

rnat

iona

l fur

tra

de. T

he D

utch

pre

vaile

d in

1655,

whe

n th

e W

est In

dia

Com

pany

sei

zed

the

asse

ts o

f New

Sw

eden

and

forc

ed it

to

capi

tula

te. T

he E

nglis

h, in

tu

rn, w

ould

sei

ze the

ter

ritor

y fro

m the

Dut

ch in

1664.

©2011 K

alm

ar

Nyc

kel Fou

ndati

on

12


The Kalmar Nyckel Foundation gratefully acknowledges the work of those who helped bring the World Trade Cards into existence. We are especially appreciative of the Davenport Family Foundation members for their sup-port and for believing in this project from its inception. Special thanks go also to Bonnie Meszaros and Barbara Emery of the Delaware Center for Economic Education and Entrepreneurship for their many critical insights and for helping to align the content with the Economics Standards of Delaware’s Recommend Curriculum. So, too, we thank the design team at Trellist, Inc., and all those who contributed images to the Cards.

– Samuel W. Heed, Senior Historian & Director of Education

CREDITS


Reference Note: Quoted definitions and explanations of economic terms come from two sources:

• “Double” quotation marks denote direct references from Delaware’s Department of Education Social Studies Content Standards, found in the Economics Qualifications Documents at http://www.doe.k12.de.us/ddoe/files/pdf/Economics_Clarifications.pdf

• ‘Single’ quotation marks denote direct references from EconEdLink’s economics glossary found at http://www.econedlink.org/economic-resources/glossary.php

Kalmar Nyckel at Downrigging Festival, Chestertown, Maryland



A Global Market

Although the term “global economy” is a recent one, it has been a practical reality since Columbus’ famous voyage across the Atlantic in 1492. Columbus started what has been called the “Columbian Exchange,” a convergence that made “One New World” out of what had been “Two Old Worlds.” The “Columbian Exchange” brought together the Americas with Eurasia and Africa for the first time, creating a truly global market. This triggered a massive series of exchanges – a cross-migration and cross-fertilization of peoples, ideas, plants, animals, and diseases – that continues to the present day.

New Sweden (1638-1655), a European trading colony established in the Delaware Valley of North America, is a prime example of how international trade connected the worlds of Europe, Africa, and the Americas – their peoples, ideas, and economies as well as animals, plants, and diseases.

WORLD TRADE

“Thinking Economically” – The World Trade Cards are a classroom resource for students and teachers studying International Trade in grades 4 & 5. Many students in grades 3 through 8 will find the Cards useful when trying to understand important economic concepts in real world contexts.