The Commercial Revolution - AP European History

What was one negative consequence of the Commercial Revolution?

Increased economic inequality. Wealth concentrated among merchants while peasants remained poor.
Which innovation reduced risks in overseas trade during the Commercial Revolution?

Insurance. Protected merchants from losses due to shipwrecks and piracy.
What was the primary motivation for European exploration during the Commercial Revolution?

To find new trade routes and resources. Economic motives drove Age of Exploration expansion.
What was the role of the Spanish Armada in the Commercial Revolution?

To protect Spanish trade routes. Naval power secured Spanish monopoly over American trade.
What major economic shift occurred during the Commercial Revolution?

Shift from feudal economies to market economies. Money-based commerce replaced traditional agricultural barter systems.
What was the role of the British Navigation Acts?

To regulate colonial trade and enable British economic control. Mercantilist legislation ensuring colonial trade benefited Britain exclusively.
Which new financial institution was developed during the Commercial Revolution?

Banking systems. Facilitated credit, loans, and international money exchange.
Identify one significant joint-stock company from the Commercial Revolution.

The British East India Company. Dominated trade with India and Asia for over two centuries.
Which country was the first to establish a global trading network?

Portugal. Pioneered sea routes to Asia and established global empire.
Which region became a major supplier of silver during the Commercial Revolution?

The Americas. Spanish colonies supplied silver that flooded European markets.
Which region was most affected by the Atlantic Slave Trade?

West Africa. Millions enslaved to supply labor for New World plantations.
Which commodity had a significant impact on the English economy during the Commercial Revolution?

Wool. Textile industry became England's primary export source.
Which European country was known for its early financial innovations?

The Netherlands. Dutch Republic pioneered banking, insurance, and stock exchanges.
What role did colonies play in the mercantilist system?

They provided raw materials and served as markets for goods. Classic mercantilist relationship ensuring metropole economic dominance.
What was the primary cause of the Price Revolution?

Influx of silver from the Americas. Spanish extraction from Potosí dramatically increased European money supply.
What was one effect of the Price Revolution on European economies?

Devaluation of currency. Excessive silver supply reduced purchasing power across Europe.
What was the economic impact of the introduction of new crops from the Americas?

Diversification of European agriculture. New World crops reduced European dependence on traditional grains.
Which economic practice involved buying goods at a low price to sell at a higher price?

Arbitrage. Fundamental commercial strategy exploiting regional price differences.
What is one effect of the Commercial Revolution on European society?

Increased urbanization. Trade growth concentrated populations in commercial centers.
What was the Commercial Revolution?

A period of European economic expansion from 16th to 18th centuries. Marked shift from medieval to early modern economic systems.
What was the 'Price Revolution'?

A period of rising prices and inflation in Europe in the 16th century. Caused by massive influx of precious metals from the Americas.
What was the primary purpose of tariffs in the mercantilist system?

To protect domestic industries from foreign competition. Mercantilist policy protecting national industries from foreign goods.
What was the main commodity traded by the Dutch in Asia?

Spices. Dutch East India Company controlled lucrative Asian spice markets.
What economic system emerged during the Commercial Revolution?

Mercantilism. Economic theory emphasizing national wealth through trade control.
Which city became a major banking center during the Commercial Revolution?

Amsterdam. Dutch financial innovations made it Europe's commercial capital.
Which product from the New World had a significant impact on European diets?

Potatoes. Revolutionized European nutrition and supported population growth.
Which technological advancement facilitated exploration during the Commercial Revolution?

Improved navigational instruments. Compass, astrolabe, and improved ship design enabled ocean voyages.
What was the 'triangular trade'?

A trade system among Europe, Africa, and the Americas. Connected three continents through systematic commercial exchange.
What was the 'Columbian Exchange'?

The exchange of goods and ideas between the New and Old Worlds. Transformed global agriculture, cuisine, and population patterns.
What is 'capitalism'?

An economic system based on private ownership and free markets. Emerged from Commercial Revolution's emphasis on profit and investment.
What was the primary goal of mercantilist policies?

To increase national wealth by accumulating precious metals. Believed gold and silver reserves determined national power.
What is the significance of the Treaty of Tordesillas (1494)?

It divided the New World between Spain and Portugal. Established colonial territorial boundaries and trade monopolies.
What is 'mercantilism'?

An economic policy that emphasizes national wealth and government regulation. Sought favorable trade balance and accumulation of precious metals.
Identify one major trade route during the Commercial Revolution.

The Atlantic Slave Trade. Connected Africa, Americas, and Europe in forced labor system.
What was the significance of the Amsterdam Stock Exchange?

It was the first official stock exchange. Established modern securities trading and financial markets.
Identify one effect of the Commercial Revolution on global trade.

Increased intercontinental trade. Connected distant markets and established global commercial networks.
Which new class emerged due to the Commercial Revolution?

The bourgeoisie. Merchant class gained wealth and political influence.
What role did joint-stock companies play in the Commercial Revolution?

They allowed for the pooling of capital for large-scale ventures. Enabled massive investments beyond individual merchant capacity.
Which economic concept involves the export of more than is imported?

Favorable balance of trade. Central mercantilist goal to maximize national wealth accumulation.

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