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Commercial Revolution

The commercial revolution was a period from the 13th to 18th centuries where Europe transitioned from local to global economies through expanded trade. Key events driving this change included the Crusades, the travels of Marco Polo, population growth increasing demand, and the Age of Discovery which opened new trade routes. This revolution established capitalism and saw the rise of a middle class as merchants and traders gained power. It resulted in economic, social, and political changes in Europe including the shift from feudalism to capitalism and the emergence of new industries and social classes.

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Francis De La Cruz
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235 views

Commercial Revolution

The commercial revolution was a period from the 13th to 18th centuries where Europe transitioned from local to global economies through expanded trade. Key events driving this change included the Crusades, the travels of Marco Polo, population growth increasing demand, and the Age of Discovery which opened new trade routes. This revolution established capitalism and saw the rise of a middle class as merchants and traders gained power. It resulted in economic, social, and political changes in Europe including the shift from feudalism to capitalism and the emergence of new industries and social classes.

Uploaded by

Francis De La Cruz
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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COMMERCIAL REVOLUTION

Commercial – related to or used in the buying and selling of goods and services. Concerned with earning
money. As a whole commercial revolution is all about business. (Merriam Webster)
Revolution – a sudden, extreme, or complete change in the way people live, work, etc.
What is Commercial Revolution?
 Is a changed in Europe from local economy to a global economy. It is also the expansion of trade
all over the world.
 Began when people started making more goods to sell rather than for their own goods.
 Introducing foreign goods, services and ideas
LOCATION AND TIME

 Started in the middle of the crusades era during late 13th century until 18th century
 Centered of trade – Western Europe
 International trade networks to: Eastern Europe, Asian Continent and South America
MAJOR EVENTS THAT LED TO COMMERCIAL REVOLUTION

 THE CRUSADES - are the campaigns in the eastern Mediterranean aimed at recovering the Holy
Land from Muslim rule.
 THE TRAVELS OF MARCO POLO IN CHINA
 Population growth from 70 million in 1500 to 90 million in 1600 that led to increase the demand
of goods and services.
 Byzantine Empire fell to the Ottoman Empire, In 1453, the Ottoman Turks took
over Constantinople, which cut off (or significantly increased the cost of) overland trade routes to
the Far East, so alternative routes had to be found.
 In Europe, kings wanted an increase in power
 Colonialism
 THE AGE OF DISCOVERY AND EXPLORATION
1. CHRISTOPHER COLUMBUS DISCOVERED THE NEW WORLD (1451-1506)
2. BARTOLOMEU DIAS, WHO FIRST ROUNDED THE CAPE OF GOOD HOPE
3. VASCO DE GAMA IN INDIA
4. HENRY THE NAVIGATOR OF PORTUGAL, THE FIRST EUROPEAN TO
VENTURE OUT INTO THE ATLANTIC OCEAN (1420)
5. HERNANDO CORTES ATTACKED AND CONQUERED TENOCHTITLAN IN 1521.
6. FERDINAND MAGELLAN VOYAGES IN 1522
The Middle Class – Merchants, Artisans, traders, famers. This middle class gained power and influence
as feudalism came to an end during the commercial revolution

 Economics in Europe became reliant on money instead of service.


How did commercial revolution works?

 MERCANTILISM – Principle of Mercantilism – A nation’s economic strength depended on


keeping and increasing its gold by exporting more goods than importing.
THE RISE OF CAPITALISM - Is an economic system whereby monetary goods are owned by
individuals or companies. Entrepreneurs invested money on their own businesses. The middle class led
the way to rise capitalism in the world.
Laissez-faire - is an economic system in which transactions between private parties are free from any
form of government intervention such as regulation, privileges, imperialism, tariffs and subsidies.
As a result, new institution were created to aid people in trade
1. Joint stock companies - A privately owned company that sells stock or partial ownership in the
company to investors
2. Banking - Raising and lending money.
3. Insurance companies - Another way of the middle classes to mitigate risk.
The guilds - Trade association created by the merchants and traders. The important of this association is
that they are the one who set standards in price and quality of goods. They had what the consumers
needed to buy.
Trade Fairs - Took place when merchants, artisans, craftsmen would gather together on the major trade
route crossroads.
Importance of trade fairs;
1. Able to get many products
2. Helped to spreads of foreign goods.
IMPORTANT EVENTS DURING THE COMMERCIAL REVOLUTION
The Columbian Exchange - refers to the exchange of diseases, ideas, food crops, and populations
between the New World and the Old World crops, and populations between the New World and the Old
World following the voyage to the Americas by Christopher Columbus
The Triangular Atlantic Trade and Slave trade - is a term that describes the Atlantic trade routes
between three different destinations, or countries, in Colonial Times. Made some continents wealthy
while it impoverished other continents. slave trade that transported between 10 million and 12 million
enslaved Africans across the Atlantic Ocean to the Americas from the 16th to the 19th century. It was the
second of three stages of the so-called triangular trade, in which arms, textiles, and wine were shipped
from Europe to Africa, slaves from Africa to the Americas, and sugar and coffee from the Americas to
Europe. The slave trade had devastating effects in Africa. Economic incentives for warlords and tribes to
engage in the slave trade promoted an atmosphere of lawlessness and violence. Depopulation and a
continuing fear of captivity made economic and agricultural development almost impossible throughout
much of western Africa. A large percentage of the people taken captive were women in their childbearing
years and young men who normally would have been starting families. The European slavers usually left
behind persons who were elderly, disabled, or otherwise dependent—groups who were least able to
contribute to the economic health of their societies.

CHANGES DURING THE COMMERCIAL REVOLUTION


ECONOMIC CHANGES
 SHIFT FROM FEUDALISM INTO CAPITALISM
 NEW BUSINESS PRACTICED WERE FORMED; PARTNERSHIP, BANKING, INSURANCE
SOCIAL CHANGES
 NEW SOCIAL CLASS WAS EMERGED the middle class.
POLITICAL CHANGES

 WITH MERCANTILISM, MANY POLICIES WERE CREATED, SUCH AS PUTTING HIGH


TARIFFS OF GOOD, AND LIMITING TRADE WITH OTHER NATIONS
 FROM THE GREAT INCREASE IN TRADE AND PRODUCTION OF GOODS, PEOPLE
WERE ABLE TO MAKE MONEY WHICH CAUSED A DIFFERENCE IN WEALTH IN
EUROPE
 BUSINESS MONOPOLIES BEGAN TO FORM.
Good Effects of Commercial Revolution

 People were able to discover new resources and products


 More job opportunities
 Set the stage into an industrial revolution
 All people use to be very poor can able to rise up on their class
Bad Effects of Commercial Revolution

 Inflation as the prices of goods increased


 The need for workers increased leading to the explosive slavery.
 The newly beginning push for expansion led to genocide of many south and north American
cultures
COMMERCIAL

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