The Commercial Revolution

1
The Commercial Revolution

• I. Global Trade
• 1. Shift of trade power
• a. From Italy
• b. To Western Europe
• -Spain, Britain, France
• Portugal
• 2. Changing source of
• a. From the Mediterranean
• b. To New World
• Commercial Revolution World Trade

2
II. Mercantilism

• 1. Theory
• a. Colonies exist to
• enrich home country
• 2. Practice
• a. Take raw materials from
• colony
• b. Manufacture a product
• with the materials
• c. Sell product for a profit
• d. Implement a Tariff

3
III. Rise of Capitalism

• 1. Capital- , raw materials, etc
• 2. Theory
• a. Use capital to build business
• b. Use business to make

4
IV. Capitalist Systems

• 1. Domestic System
• a. Manufacture product _at_ home
• -home business
• 2. Factory System
• a. Manufacture in bulk
• in one location.
• -a factory
• 3. Joint-Stock Company
• a. Borrow money from
• people to run a business
• b. Stock Ownership
• c. Dividends profit for
• the stockholder