Transcript Chapter 14 Section 2

Chapter 14
Section 2
The Revival
Of Trade
Review
• At the end of the 4th Crusade who was
in control of Constantinople?
• What helped make Italy into a major
trading power?
• Pope Urban called on Europeans to join in
a Crusade against who?
Trade Routes
• {the decline in trade in medieval times was caused by the
manorial system} because manors grew or made nearly
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everything they needed
Because of the Crusades trade began to rise in Europe again
Italy was the first site of the trade revival, bringing Asian goods
to Europe
Soon Kiev, Flanders (now a part of Belgium, France and the
Netherlands) and German Cities became important trading
centers
Because Germany’s weak government could not control trade
the Hanseatic League was created.
The League set up trading posts in other countries and
increased trade in northern western Europe
•Sorry, I
couldn’t
find a
map of
Flanders
Trade Goods and Markets
• As trade grew, merchants needed a place to sell their goods
but local markets did not attract large enough crowds
• {Most early merchants sold their goods at local fairs} the
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local rulers would put taxes on the sold items in exchange for
special services such as armed guards to protect from thieves
At first business was done through {a barter economyexchanges of goods and services} but as the fairs grew
larger a fixed value was placed on goods.
However, local rulers made their own coins and money
changers had to place values on one currency in relation to
another
Fairs were also popular social events.
•A
tapestry
depicting
what a
local fair
might
look like
Manufacturing
• The system of manufacturing that developed during in
the Middle Ages was called the domestic system
• {Under the domestic system workers made a part of
a product in their homes}
• For example: An individual would but wool and then
hand it out to several other workers. Each worker then
completed a task at home such as spinning, weaving
or dyeing. The owner of the wool then collected the
cloth and sold it at the highest price possible.
Banking
• {The currency exchangers were the first bankers. The
most important purpose of early banks was to provide
money lending services}
• Because Christianity did not allow usury- charging
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interest on loans, Jewish people became
moneylenders because they were not permitted to
own land or join groups for skilled workers
Money changers also developed special notes called
bills of exchange that allowed a merchant to deposit
money in one town in exchange for a bill in the
amount of the deposit. He could then go to another
town and exchange the bill for money
• {Banks helped international trade by allowing
merchants access to money in different locations}
Medieval Banking
Investing
• In the later Middle Ages, Europeans began investing
capital
• Capital is money earned, saved and invested to make
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profits
Sometimes several people combined their capital to
pay for a new business. They shared in the costs and
the profits
• {Medieval merchants were able to finance their work
through gathering partners to invest}
• {Manufacturing, banking and investing were the first
steps toward the creation of a market economy}-
land labor and capital are all controlled by individual
persons- and formed the basis of our capitalist system
Review
• Pope Urban called on Europeans to join in
a Crusade against who?
• the decline in trade in medieval times was
caused by the _______ system
• Where did most early merchants sold their
goods?
• Under what system do workers made a
part of a product in their homes?
• What was the most important purpose of
early banks ?
• This is the second
rarest large carnivore
in Africa, next to the
Ethiopian wolf. Their
scientific name is
Lycaon Pictus meaning
painted wolf. They are
cousins of the
domestic dog and are
the only ones in their
genus Lycaon. Africans
consider them to be
the second most
successful predator in
the world, second only
to humans