TIMES OF CHANGE: THE EXPANSION OF TRADE What impact might increased trade and business have on society’s worldview? The rise of international trade The.

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TIMES OF CHANGE: THE EXPANSION OF TRADE What impact might increased trade and business have on society’s worldview? The rise of international trade The Italian city-states

Marco Polo was the legendary trader who travelled to the far east to trade goods He wrote a book about his travels to the area we know as China Today scholars still debate how much of the account Polo actually experienced and how much he picked up from other merchants on the road THE RISE OF INTERNATIONAL TRADE

The Silk Road was the routes that connected civilization in the Mediterranean in the west to the Pacific Ocean in the east In addition to trade goods the intercultural contact led to exchanges of ideas and knowledge as well Few of the travellers and traders on the Silk Road were European Qyg&safe=active THE RISE OF INTERNATIONAL TRADE

Trade between Venice and other Italian cities and the East had actually been re-established several centuries before the Polos’ journeys It actually resulted from a religious wars between the Christians and Muslims called the Crusades The land of Palestine contains religious sites sacred to the Jewish, Muslims and Christians In the middle of the seventh century Muslims took control of the area and in 1095 Pope Urban II launched a Christian Crusade to drive out the Muslims In all there were four crusades but at the end the Muslims were in control of all their lands THE CRUSADES AND TRADE

Results of the Crusade Contact with the Muslim world trade During this period, the Muslims were more advanced Advances in medicine, astronomy, philosophy, mathematics were the result for Europeans Muslim societies were inclusive and welcomed contributions of Christian and Jewish scholars Following the Crusades Italian merchants brought back luxury goods precious jewels, rugs, fabrics and spices THE CRUSADES AND TRADE

Today we have many ways of moving goods and resources Goods needed to be moved at enormous expense to market towns on ships along the coast, on boats down along rivers, or overland by horse, mule or ox Some areas had surpluses in minerals but would have to trade for cloth or manufactured goods All trade is based on surpluses The ships of the city-states competed with German and Dutch ships When Canada was first discovered by Jacques Cartier in 1534, it helped to solidify a growing triangle trade network in the Atlantic A9DBC7 A9DBC7 MOVING GOODS AND RESOURCES

Modern Italy was a collection of city-states during the Renaissance A city-state is an area that is politically independent and the rural area around it The rural area is referred to as the hinterland Florence, Genoa and Venice were some examples THE ITALIAN CITY-STATES

Reasons for success of the city-states 1. Advantageous geography Closest to ports of Africa and the Eastern Mediterranean 2. Advantageous climate Long growing season and warm weather port THE ITALIAN CITY-STATES

Reasons for success of the city-states 3. Different leadership structures Not a monarchy like most in Europe also had wealthy trading and business leaders 4. Different social structure Feudalism not nearly as strong, as a result mostly nobles had positions of influence in cities THE ITALIAN CITY-STATES

One way wealth was accumulated was by merchants who purchased goods in one place and sold them for a higher price in another Bankers made money by usury, the practice of charging interest when loaning money During the Middle Ages the Catholic Church considered usury a sin Due to the risks involved in trade like shipwrecks and robbery by pirates the Church changed its position on usury HOz8T6tAo&feature=related&safe=active HOz8T6tAo&feature=related&safe=active ECONOMICS OF CITY-STATE ERA

As usury became more accepted, new business practices emerged ECONOMICS OF CITY-STATE ERA BUSINESS PRACTICEPURPOSE Partnerships and joint stock companies used to raise capital for larger projects. Less financial risk to the individual BanksProvided money lending services as well as issuing bills of exchange Bills of exchangeWorked like modern chequing account. Merchant would deposit gold and receive a bill of exchange. Could turn in that for gold at other banks. Easier and safer than carrying gold along trade routes. InsurancePaid a small fee to insure goods during travel. If goods were damaged or lost insurance company pays replacement costs. If goods arrive safely insurance company keeps the fee

The Medici family was the most famous and powerful in Italy. They were influential in the culture of Florence for over 300 years. They made their fortune as wool and silk merchants before becoming bankers They increased their power by building alliances with other wealthy families acquiring important positions in the church marrying into some of Europe’s royal families By 1434 Cosimo de Medici was powerful enough to take control of Florence THE MEDICI FAMILY: A CASE STUDY

Under Cosimo’s leadership neighbouring city states found themselves either target of attacks like Sienna or alliance partners like Milan The Medici’s made many enemies and by 1494, important family members were exiled from Florence and not allowed to return for many years The most famous Medici was Comimo’s grandson, Lorenzo the Magnificent Known as a patron of the arts he sponsored Renaissance artists like Michelangelo, Botticelli and Leonardo da Vinci U U THE MEDICI FAMILY: A CASE STUDY