For example, spices in the 1600s were frequently transported along a series of
entrepoˆt ports of call between Southeast Asia, where nutmeg, cinnamon, and other
high-value goods were purchased, and the major market area for the spice trade,
Europe. Singapore and Penang, Malaysia both developed into major economic
centers through entrepoˆt trade. By employing a system of entrepoˆt ports, compa-
nies in the spice trade, at the time primarily the Dutch East India Company, could
stabilize supply and also reap additional benefits, such as replenishing damaged
stock, exchanging information concerning fluctuations in production or the status
of suppliers, and other non-tangible business advantages that collectively helped
to maximize profits and limit risk. Managing the supply of spices was essential,
because the demand for these commodities was stable, and an unexpected glut in
supply could result in a dramatic drop in price. If too many ships carrying cargoes
of spices arrived at Dutch ports unexpectedly, the surplus supply could result in the
entire expedition failing to turn any profit, a serious failure indeed since the Dutch
East India Company raised revenue to finance its ventures by selling stock. Too
many failures to make a profit would not only result in financial losses, but under-
mine the faith of investors and damage the company’s ability to raise future invest-
ment capital. Under the monopolistic circumstances of the spice trade, the entrepoˆt
system allowed adjustments to be made in deliveries that virtually eliminated the
dangers of oversupply.
The system also took root in Europe itself, with first Antwerp and later Amsterdam
functioning as thriving centers of entrepoˆt trade. Antwerp was the leading entrepoˆt
port in central Europe until 1585, when the city was badly damaged by military
action as a result of the Dutch Revolt against Spain. Ironically it was the connection
to Spain that had enabled Antwerp to dominate other ports in the region, but by
the early 1600s Amsterdam had replaced Antwerp as the leading free port in the
Netherlands. After the establishment of the Dutch Republic in 1581, Amsterdam
became the home port of the Dutch East India Company, and the profits from the
high-value commodities that the port traded, like spices, silk, and porcelain, led
to the accumulation of enormous wealth. Eventually competition from British
merchants undermined Amsterdam’s dominance, but for a century and a half its
trading status made the Netherlands the leading maritime power in the world.Environmental Determinism
A highly controversial theory, environmental determinism has influenced
geographical thought for many centuries, and became a dominant philosophical
approach in American geography in the late 19th and early 20th centuries.114 Environmental Determinism