The+Commercial+Revolution


 * __$$$$The Commercial Revolution$$$$__**
 * Directions: Read the following information about the Commercial Revolution. Ask Andrew and Jessica for the questions and use the information to answer them.**

When you see a commercial on television, what are the makers of the commercial trying to do? They are trying to sell you something and make you spend money on their product. The following reading describes a time period called **The Commercial Revolution**. The Commercial Revolution was a time of great economic change, when money gained importance in European society. When you see the word **Commercial**, I want you to always think about money, because this revolution was all about it!
 * Introduction**

During the Middle Ages, the most important thing a person could have was land. Feudalism and the manor economy were based on land. If you had land, you had power. It was very difficult to move up in society, because most land was inherited through the family. People were born into their places in society with little hope of a life different from that of their parents. If you were born a serf, you could expect to die a serf.
 * Before it all started…**

This all changed with the expansion of trade and the growth of cities between 1000 and 1300. The Crusades created interest in trade with the Middle East and Asia. New ways of doing business arose in Europe, and for the first time in a long time, money grew in importance. This time period is known as the Commercial Revolution.
 * Causes…**

The Commercial Revolution was a time of great economic change. As feudalism was declining all over Europe, a new system called capitalism was emerging. **Capitalism** is based on trade and capital, the name for money used for investment. A money economy gave a larger number of people the ability to gain wealth and to rise in society. Serfs no longer had to be satisfied with their lives, and could move off the manor and find new opportunities in cities. This led to a weakening of the feudal system in Europe.
 * Effects…**

A growing population and an increase in trade led to the **growth of towns and cities**. Urban centers based on trade gave new power to a rising new class—a **middle class** of merchants, traders, and artisans. They were called the “middle” class because they ranked between nobles and serfs.

Merchants and craftspeople formed **guilds**. A guild was a type of trade association, like a union. All of the people who worked in one craft would join together and work to protect the interests of their members. They would set quality standards for goods and regulate work hours and prices.

The new middle class gathered together in various types of organizations to help their businesses grow. These organizations made it easier to finance large-scale trading ventures that they could not afford on their own. · **Partnerships** o Two people pooled their money to invest in big projects. They then split the profits. · **Joint Stock Companies** o More than two merchants pooled their money for a business venture. Each person that gave money had a share of the profits. · **Banking** o Individuals often did not have the money they needed for big investments. They borrowed form moneylenders, who developed a system of banking. o Banks also issued **bills of exchange**, which were like today’s checks. It was dangerous to travel with large amounts of gold coins, so banks issued bills that could be exchanged for cash.