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Commercial Revolution: Commerce In The Middle Ages

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In the middle of the Medieval Period, Europe went through a period known as the Commercial Revolution. According to Encyclopedia Britannica on the Commercial Revolution, it was a “Great increase in commerce in Europe that began in the late Middle Ages. Among the features associated with it were… the appearance of a chartered company, acceptance of principles of mercantilism… creation of a money economy… and the establishment of such new institutions as the state bank.” With the definition, the featured created by the Commercial Revolution sound very similar to features of the economy we have today. How did the trade revival influence the economy of modern times? According to the articles published about the Commercial Revolution, the trade …show more content…

These are needed today because there are so many different currencies around the world today, like the US Dollar, the Euro, English Pounds, etc. Currency was needed in Europe by the 12th Century because of the vast amount of trade that occurred. According to the article by Roberto Naranjo, “fine French cloth, oriental silk, spices, furs, cotton goods, wool for the growing local industry, salt for universal consumption” (Naranjo). These were popular goods traded between states during the Medieval Ages, but they needed something to pay for those besides a trade between goods, so a national currency was established. This is similar to the modern times because trade occurs everyday, like clothes, foods, and materials for building/crafting, and people use a currency established by their nation to pay for items. In England, the first form of currency were the groat penny, and then the silver coin, and then the gold coin. Each of these would be able to convert over to a higher level of currency (12 pennies is equal to a shilling and a pound is equal to 160 pennies). This is similar to the economy of today because in the United States, a similar system is used: five pennies is equal to a nickel, four quarters is equal to a dollar, etc. Because of the Commercial Revolution, the moneychanger was created so money could be …show more content…

We live in a commercial world dominated by capitalism, each company trying to make the most amount of profit and expand their company with the help of the Stock Exchange. In the article “How the Stock Market Was Started & By Whom” it says that “many pioneer merchants wanted to start huge businesses, this required substantial amounts of capital that no single merchant could raise alone. As a result, groups of investors pooled their savings and became business partners and co-owners” (Bramble). This is similar to the economy and capitalism of today because entrepreneurs usually do not have enough money to start a business, and therefore they need co-owners to help lend money to achieve their goals. On the stock market, investing could go through a rapid growth or a rapid decline if the popularity on the good produced is high or low. This was seen during the Medieval Ages when Europe went through a warming period allowing farming to increase, so this would be a prime investment during that period to make a profit. This is similar to the Stock Market and economy of today because stocks can rise or fall because of popularity or if the item is desirable. During Medieval Europe, the people at the top with all of the wealth dominated the peasants below them who held less money. This is similar to the social structure of today because in the article “Modern

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