1. The Commercial Revolution & The Dutch Golden Age
Mr. Meester
AP European History
Pages:

2. Causes of the Commercial Revolution
New Trade Routes
Spices, Sugar, and Precious Metals brought great wealth
The wealth encouraged new investments in a wide array of ventures
Population Growth
New foods help increase growth (70 million in 1500 to 90 million in 1600)
Increasing Prices
Inflation and increasing demand from a growing population
Nation-centered Economies
Began replacing the old guild system
Allowed for more innovation

3. Key Features New Entrepreneurs New Industries New Putting-Out System
Commercial activity greatly expanded geographically
Merchants & Bankers surpassed the old guild system
New Industries
Books, shipbuilding, modern weapons
New Putting-Out System
Entrepreneurs provided raw materials to rural families to avoid the guilds
Greatly increased production of goods like cloth
Joint-Stock Companies
International trade required large amounts of capital
Merchants bought stock in companies to maximize profits & limit losses

4. Mercantilism
The rulers of the new nation-states adopted a new economic system known as mercantilism
Mercantilists wanted strong self-sufficient economies
The role of colonies
Export raw materials and Import manufactured goods
They could only trade with their mother country
This would create a favorable trade balance
Increased reserves of gold and silver

5. Results of the Commercial Revolution
Decline of early commercial centers
As the western states rose the Hanseatic League in the north declined
Italy’s monopoly was broken and it declined
Rise of capitalism
Began with the idea of using capital to produce more capital
Influence of the guilds declined
Rise of the middle class
Commercial capitalism greatly expanded the middle class

6. The Dutch Republic
During the 17th and 18th century the Dutch took a different route than the rest of Europe
The United Provinces were made up of 7 northern Dutch provinces
The Provinces were politically independent
The central government was embodied by the States General
Holland and the House of Orange dominated the United Provinces
Calvinism was the dominate religion
The Dutch tended to be much more religiously tolerant than other nations

7. Urban Prosperity The 17th Century is considered the Dutch Golden Age
This was a result of their superior economy
Most people lived in the cities
Improved agricultural methods
Key domestic industries; Fishing, Textiles, Shipbuilding, and Banking
They had a tremendous overseas empire
East India Trading Company

8. Economic Decline
The end of the Golden Age began at the start of the 18th century
After the death of William III of Britain they lacked a strong leader
Their naval supremacy declined slowly
Their technological advantage in shipbuilding disappeared
They would continue to dominate the banking industry
Amsterdam would continue to be leading economic center in Europe