1. The Commercial Revolution
European Recovery during the late Medieval period and the Renaissance

2. I. Causes
New ways of “doing business” were devised to meet the needs of a changing Europe.
“How had Europe’s economy changed during the late medieval and early modern periods?”
As a result of some of these changes Europe (see next slide) and the world in general were becoming economically interdependent.
“How?”

4. II. Rise of Capitalism and the Commercial Revolution
As manorialism and feudalism were declining all over Europe, a new capitalist system was emerging. In a capitalist system private individuals make economic decisions.
Capitalism is based on private individuals trading and investing capital (money used for investment).
“How could the development of a ‘money’ economy undermine serfdom?”

5. III. The Domestic System
Unlike the medieval period, the commercial revolution involved the gradual development of a “sellers” instead of a “producers” directed market.
The domestic system weakened the localized guilds that had existed during the medieval period.

6. IV. New Ways of Organizing Business
In addition, to facilitate the development of commercial ventures: partnerships, joint stock companies, and insurance companies were formed.
Bankers like the Medici and Fuggers provided monarchs and entrepreneurs much needed investment capital.
Both banking families supported artists like Michelangelo and Albrecht Durer.

8. V. The Significance
THESE CHANGES ARE COLLECTIVELY KNOWN AS THE COMMERCIAL REVOLUTION.

9. VI. Extra Credit * Introduction
Hello, my name is John Q. Sheeeeep. My fellow sheeeeeep and I live in an enclosure somewhere in the Low Countries. In days past, we would often see the local villagers wearing fine woolens and were darn proud of it. Now we have no idea where our wool goes.
* Help the sheep!
- Create an annotated diagram to help the sheep understand what happens to their wool.
- In other words, create a diagram that outlines wool cloth production during the “commercial revolution.”
Be sure to address important “vocab.” words found in the notes and text.
USE THE INFORMATION FROM THE BLUE TEXT (CHAPTER 3). BE CREATIVE AND EXACT.