The Commercial Revolution refers to the period of European economic expansion, colonialism, and mercantilism that lasted from the late 11th century to the early 18th century. It marked a significant transformation in the way commerce and trade were conducted, characterized by several key developments:
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Expansion of Trade Networks: Increased trade with Asia, Africa, and the New World, facilitated by exploration and the establishment of sea routes.
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Formation of Capitalist Economies: The rise of capitalism, characterized by the accumulation of capital, investment in new enterprises, and a shift towards market-oriented economies.
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Colonialism and Empire Building: The establishment of overseas colonies and trade empires, with European powers such as Spain, Portugal, England, and the Netherlands exploring new territories for resources and trade opportunities.
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Development of Financial Instruments: The emergence of banking, joint-stock companies, and other financial innovations that allowed for larger scale investments in trade and exploration.
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Mercantilism: An economic theory that emphasized the importance of a positive balance of trade and the accumulation of wealth through exports and the control of trade routes.
Overall, the Commercial Revolution set the stage for the modern global economy and had profound impacts on social structures, economies, and the political landscape in Europe and beyond.