The Rise of Europe The end of isolation and the rise of exploration and new business practices
Causes of Intercontinental Trade and the Commercial Revolution Historical Background… Pax Mongolia Individual exploration and cultural diffusion Ibn Battuta, Marco Polo, Zheng He Crusades - end European isolation Rise of Italian city states and international trade Growth of towns after the plague
The Commercial Revolution and its Effects
Commercial Revolution Changes in business and trade practices in Europe in the 1300 and 1400s Two big changes: Rise of Mercantilism and Capitalism Mercantilism: Government sponsored overseas trade Capitalism: Private ownership of wealth
Growth of Towns and Urbanization Towns offered economic opportunities “Town air makes you free” Growing middle class Quick growth lead to dirty, unplanned cities How did you go to the bathroom? 3 field system supported growing population
Rise of Guilds in Cities and Towns Guild: group of people with the same occupation Controlled wages, prices, and quality of goods in field Part of the growing middle class Only “masters” could join guild Apprentice journeyman master Examples: silversmith, goldsmith, tailor, carpenter, glassmaker, wheelwright
Social Changes Plague destroyed feudal social structure and manorialism No more serfs/knights Increase in social mobility Merchants & Bankers rise in status Why? Larger middle class More complex economies
Rise of Capitalism Economic system Based on private ownership and investment of wealth Governments no longer sole owners of wealth People invest $ in trade, companies, businesses Prices determined by supply and demand
What is the downside to capitalism?
New Business Practices Rise of the Joint Stock Company People pool $ for common purpose ($$$) Dutch East India Company British East India Company You own stocks, or shares, of a company How do you gain or lose money?
What’s the point of these cartoons?
New Business Practices… Monarchs start investing in exploration Rise of mercantilism Governments gain colonies to create trading opportunities and gain gold/silver Leads to Age of Exploration Attempt to break Venice’s monopoly on trade
Goal… Reach the Spice Islands – Why? How do we get there?
Early exploration of new trade routes
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