The Commercial Revolution, which took place primarily in Europe from the late 11th century to the early 18th century, can be best described as a period of significant economic expansion, characterized by the growth of trade networks, the rise of a market economy, the establishment of new financial instruments, and the emergence of capitalism. Key elements of the Commercial Revolution include:
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Increased Trade: Expansion of trade routes across Europe, Asia, and Africa, with a focus on luxury goods such as spices, textiles, and precious metals.
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Rise of Mercantilism: Economic policies that emphasized the importance of accumulating wealth through a favorable balance of trade and the establishment of colonies.
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Development of Banking and Financial Institutions: The creation of banks, joint-stock companies, and stock exchanges that facilitated investment and trade.
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Urbanization: Growth of cities as centers of commerce and trade, leading to the rise of a middle class of merchants and traders.
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Innovations in Navigation: Advances in maritime technology that improved exploration and trade routes, such as the magnetic compass and the caravel ship.
Overall, the Commercial Revolution laid the groundwork for modern economic practices and the eventual shift towards an industrial economy.
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