Commercial Revolution

Definition

The Commercial Revolution refers to the period of European economic expansion, colonialism, and mercantilism from the late 13th century to the 18th century. This era saw significant changes in trade practices, the growth of markets, and the establishment of new trade routes that connected Europe with Africa, Asia, and the Americas. These shifts had profound impacts on agricultural practices and industrial production, leading to innovations and increased productivity.

5 Must Know Facts For Your Next Test

1. The Commercial Revolution was fueled by the Age of Exploration, which opened up new trade routes and created a global economy.
2. The rise of joint-stock companies allowed for greater investment in overseas trade, significantly increasing the volume and value of goods exchanged.
3. Agricultural innovations during this time included crop rotation and selective breeding, which improved food production and supported population growth.
4. Cities expanded rapidly as centers of trade and finance, leading to the growth of a merchant class that played a crucial role in economic changes.
5. Mercantilist policies dominated European governments during the Commercial Revolution, emphasizing state control over resources and encouraging colonial expansion.

Review Questions

• How did the Commercial Revolution influence changes in agricultural production during this period?
  • The Commercial Revolution brought about significant agricultural innovations that enhanced productivity. Practices such as crop rotation and selective breeding emerged, which increased yields and allowed for better management of resources. This increase in food production supported population growth and urbanization, contributing to a more dynamic economy that was essential for supporting expanding trade networks.
• Evaluate the impact of joint-stock companies on trade during the Commercial Revolution.
  • Joint-stock companies transformed trade by allowing multiple investors to pool their resources for large-scale ventures. This financial structure made it possible to undertake expensive trading expeditions and establish colonies without putting all assets at risk. The success of these companies facilitated a dramatic increase in European involvement in global trade, leading to wealth accumulation and influencing national economies across Europe.
• Analyze how mercantilist policies shaped the economic landscape of Europe during the Commercial Revolution and their long-term effects on global trade.
  • Mercantilist policies were central to the Commercial Revolution, as they aimed to increase national power by controlling trade and accumulating wealth through exports. These policies led to intense competition among European powers for colonies and resources, fundamentally shaping international relations. In the long term, they established patterns of exploitation and dependency that influenced global trade dynamics well into the modern era, laying the groundwork for economic systems that persist today.

Related terms

Mercantilism: An economic theory that emphasized the role of the state in managing international trade, aiming to accumulate wealth through a favorable balance of trade.

Joint-stock Company: A business entity where different stocks can be bought and owned by shareholders, enabling the pooling of capital for large-scale ventures such as trade expeditions.

Price Revolution: A period of rising prices in Europe during the 16th and early 17th centuries, attributed to an influx of precious metals from the New World and increasing demand for goods.