Ch.11.2 Trade Cornell Reading Notes DQ Class Notes Document Questions Bell Work: List Three Reasons why Europeans were convinced to go on the Crusades. Cornell Reading Notes DQ Class Notes Document Questions Objective Review

11.2 Target & Objectives Target 11.2-Revival of Trade SWBAT: Analyze the Political, Economic, and Social Effects of Trade in Europe during the Middle Ages. /5 Objective 1: Explain how Revival of trade came about in Europe. Objective 2: Describe how Markets & Fairs led to the Barter economy. Objective 3: Describe Domestic System & Market Economy.

Chapter 11.2 Notes Barter Economy: is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. Domestic System (Cottage system or Putting-Out system): New method of production in which manufacturing took place in workers’ homes. allowed many of the working class to earn a living outside of agriculture while remaining in the village where they lived. Usury: Charging of interest on loans. In places where interest became acceptable, usury was interest above the rate allowed by law. Capital: wealth that is earned, saved, and invested to produce profit. Market economy: an economy which land, labor, and capitol is controlled by individuals. economy based on the power of division of labor in which the prices of goods and services are determined in a free price system set by supply and demand.

Trade Revival in Europe The Italian cities-states; Venice, Genoa, and Pisa won trading rights in Constantinople, Syria, and North Africa. Crusade ships from Italian city-states carried crusaders to the Holy Lands & brought back rich cargos. Hanseatic League- 100 German cities such as Hamburg, Lubeck, and Bremen became powerful influences in commerce in Northern Europe. Flanders-meeting point for Belgium, France, & Netherlands via its connections to the Rhine River and English channel. Moved from a Barter economy to market economy. Fairs were a market to sale imported goods. Domestic system goods produced at workers’ homes. The Jews controlled most of the banking. Usury

Review Chart Location Reason for trade Revival Italy Northern Europe Flanders

Ch.11.2: ¼ sheet 2) Usury 3) Barter Economy 4) Domestic System 1) Capital 2) Usury 3) Barter Economy 4) Domestic System 5) Market Economy A) manufacturing took place in workers’ homes. B) land, labor, and capitol is controlled by individuals. C) Charging of interest on loans. D) investment to produce profit. E) exchanged for other goods or services without using a medium of exchange.