Commercial Revolution

commercial revolution, in European history, a fundamental change in the quantity and scope of commerce. In the later Middle Ages steady economic expansion had seen the rise of towns and the advent of private banking, a money economy, and trading organizations such as the Hanseatic League. Under the new national monarchies, most notably those of Portugal, Spain, the Netherlands, and England, markets grew wider and more secure. Commercial expansion was supported by technical improvements in seafaring, and from about 1450 explorations were made, first to Africa, then to the Asia and the New World. By the mid-16th cent. the Asia carrying trade had been wrested from the Arabs, and Eastern goods poured into Europe. From the New World came gold and silver, which in less than a century more than doubled European prices and greatly stimulated economic activity.

The focus of commerce shifted from Mediterranean to Atlantic ports, chartered companies were organized, and continued improvements in navigation and ship construction sped long voyages. As a worldwide trade evolved, the principles of mercantilism were adopted, and local trade barriers were abrogated, stimulating internal commerce. Modern credit facilities also appeared; new institutions included the state bank, the bourse, and the futures market, and the promissory note and other new media of exchange were created. Quickened commercial activity brought economic specialization, thus leading to the transformations in production associated with modern capitalism. By 1700 the stage was set for the Industrial Revolution.

Bibliography

See H. A. Miskimin, The Economy of Early Renaissance Europe, 1300–1460 (1969); J. Gies, Merchants and Moneymen (1972); M. M. Postan, Medieval Trade and Finance (1973); P. Spufford, Power and Profit: The Merchant in Medieval Europe (2003).

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Commercial Revolution

Great increase in commerce in Europe that began in the late Middle Ages. It received stimulus from the voyages of exploration undertaken by England, Spain, and other nations to Africa, Asia, and the New World. Among the features associated with it were a surge in overseas trade, the appearance of the chartered company, acceptance of the principles of mercantilism, the creation of a money economy, increased economic specialization, and the establishment of such new institutions as the state bank, the bourse, and the futures market. The Commercial Revolution helped set the stage for the Industrial Revolution.