In what sense can we speak of "globalization" before modernity? What are the characteristics and origins of the economic system we know as "capitalism"? When and why did European economies begin to diverge from those of other Eurasian societies? With these big questions in mind, the primary focus will be on the history of Europe and European empires, but substantial readings deal with other parts of the world, particularly China and the Indian Ocean. HISTORY 307C is a prerequisite for HISTORY 402 (Spring quarter).