Commercial Revolution PowerPoint

What do we know about the
economy of the Middle Ages???
The Price Revolution
£ A. Population Growth 20 % growth between 1500-1600
(up to 90 mil)
£ B. Inflation 
 Causes
 Merchants liked£ C. Leads to the Commercial “Revolution” ??
 
 
II. New Commerce and Production
£ A. As markets widened…
£ B. New entrepreneurs
£ C. Putting Out System (
 Entrepreneurs….
 Kept ownership…
 Labor often became gender divided
£ D. Divergence in Capital & Labor
People worked for wages with no connection to the big picture; as opposed
to working for their own lives/communities
II. New Commerce and Production
£ E. New Industries  mining, cannons &
muskets, & shipbuilding; printing,
consumer goods (sugar, rice); textiles
£ F. New Banking Practices 
£ G. Joint Stock Companies 
III. Mercantilism
A. “Bullionism”  the eco. health of a nation could
be measured …
 ‘Hard’ money was the source of prosperity,
prestige, and strength for a nation.
 Bullionism dictated a …
• Export more than you import [a trade
 ________________ on imported
manufactured good.
 _________________ on imported raw
B. Each nation must try to achieve ….
 Those founding new industries should be rewarded
by the state
Characteristics of Mercantilism
C. ________________ should be
carefully encouraged.
 Less of need to import foods.
 Prosperous farmers could provide a base
for taxation.
D. ____________ was necessary to
control foreign markets.
 Less need to use the ships of other
nations to carry your trade goods.
 Your own fleet adds to the power and
prestige of the nation.
E. Oppose __________________
 further centralization
Characteristics of Mercantilism
F. ___________ would provide captive
markets for manufactured goods &
sources of raw materials.
Manufactured goods
As much as
possible, trade
ONLY with your
allies and your
own colonies
Cheap labor
G. Trade is a _____________________
 A nation can gain in international trade only
at the expense of other nations.
Characteristics of Mercantilism
H. _________________ was needed to
provide a domestic labor force to
people the colonies.
I. ______________ should be avoided
 They took money out of the economy
 In done in theory ONLY!!!
Characteristics of Mercantilism
J. _________________ was needed to
regulate and enforce all of these
economic policies.
State-sponsored trade monopolies.
• Eng & Dutch East India Co.’s
Assist merchants against restricting
Internal tariffs outlawed
Jean Baptiste Colbert [(1619-1683)
£ Architect of French
mercantilism or
£ There are four
professions of
importance to the nation:
 Agriculture
 Trade
 Army
 Navy
£ Encouraged uniform
weights & measures.
 Not successful, but effort at
£ Opposed tolls on internal
Jean Baptiste Colbert [(1619-1683)
£ Supported mandatory labor on national
£ Favored a large population.
 Father of 10 or more children would be
exempt from taxes.
£ Favored low wages and child labor.
Colbert & Louis XIV
Who Benefited Most From
£ Monarchs 
£ Merchant capitalists 
£ Government officials 