Chapter 14 Chapter 14 Section 2Section 2

The Revival The Revival

Of TradeOf Trade

Review Review

• At the end of the At the end of the 4th Crusade4th Crusade who who was in control of Constantinople?was in control of Constantinople?

• What helped make Italy into a major What helped make Italy into a major trading power?trading power?

• Pope Urban called on Europeans to Pope Urban called on Europeans to join in a Crusade against who?join in a Crusade against who?

Trade RoutesTrade Routes

• {the decline in trade in medieval times was caused by {the decline in trade in medieval times was caused by the the manorial systemmanorial system}} because manors grew or made because manors grew or made nearly everything they needednearly everything they needed

• Because of the Crusades trade began to rise in Europe Because of the Crusades trade began to rise in Europe again again

• Italy was the first site of the trade revival, bringing Italy was the first site of the trade revival, bringing Asian goods to EuropeAsian goods to Europe

• Soon Kiev, Flanders (now a part of Belgium, France and Soon Kiev, Flanders (now a part of Belgium, France and the Netherlands) and German Cities became important the Netherlands) and German Cities became important trading centers trading centers

• Because Germany’s weak government could not control Because Germany’s weak government could not control trade the Hanseatic League was created.trade the Hanseatic League was created.

• The League set up trading posts in other countries and The League set up trading posts in other countries and increased trade in northern western Europeincreased trade in northern western Europe

•Sorry, I Sorry, I couldn’t couldn’t find a find a map of map of FlandersFlanders

Trade Goods and Markets Trade Goods and Markets

• As trade grew, merchants needed a place to sell their As trade grew, merchants needed a place to sell their goods but local markets did not attract large enough goods but local markets did not attract large enough crowdscrowds

• {Most early merchants sold their goods {Most early merchants sold their goods at local fairsat local fairs} } the local rulers would put taxes on the sold items in the local rulers would put taxes on the sold items in exchange for special services such as armed guards to exchange for special services such as armed guards to protect from thievesprotect from thieves

• At first business was done through At first business was done through {a {a barter economy-barter economy- exchanges of goods and servicesexchanges of goods and services} } but as the fairs but as the fairs grew larger a fixed value was placed on goods. grew larger a fixed value was placed on goods.

• However, local rulers made their own coins and money However, local rulers made their own coins and money changers had to place values on one currency in relation changers had to place values on one currency in relation to anotherto another

• Fairs were also popular social events.Fairs were also popular social events.

•A A tapestry tapestry depictindepicting what a g what a local fair local fair might might look likelook like

ManufacturingManufacturing

• The system of manufacturing that developed The system of manufacturing that developed during in the Middle Ages was called the during in the Middle Ages was called the domestic systemdomestic system

• {Under the domestic system workers {Under the domestic system workers made a made a part of a product in their homespart of a product in their homes} }

• For example: An individual would but wool and For example: An individual would but wool and then hand it out to several other workers. Each then hand it out to several other workers. Each worker then completed a task at home such as worker then completed a task at home such as spinning, weaving or dyeing. The owner of the spinning, weaving or dyeing. The owner of the wool then collected the cloth and sold it at the wool then collected the cloth and sold it at the highest price possible. highest price possible.

BankingBanking• {The currency exchangers were the first bankers. {The currency exchangers were the first bankers.

The most important purpose of early banks was to The most important purpose of early banks was to provide provide money lending servicesmoney lending services}}

• Because Christianity did not allow Because Christianity did not allow usuryusury- charging - charging interest on loans, Jewish people became interest on loans, Jewish people became moneylenders because they were not permitted to moneylenders because they were not permitted to own land or join groups for skilled workersown land or join groups for skilled workers

• Money changers also developed special notes called Money changers also developed special notes called bills of exchange that allowed a merchant to deposit bills of exchange that allowed a merchant to deposit money in one town in exchange for a bill in the money in one town in exchange for a bill in the amount of the deposit. He could then go to another amount of the deposit. He could then go to another town and exchange the bill for moneytown and exchange the bill for money

• {Banks helped international trade by allowing {Banks helped international trade by allowing merchants access to money in different locations}merchants access to money in different locations}

Medieval BankingMedieval Banking

Investing Investing

• In the later Middle Ages, Europeans began In the later Middle Ages, Europeans began investing capitalinvesting capital

• CapitalCapital is money earned, saved and invested to is money earned, saved and invested to make profits make profits

• Sometimes several people combined their capital Sometimes several people combined their capital to pay for a new business. They shared in the to pay for a new business. They shared in the costs and the profitscosts and the profits

• {Medieval merchants were able to finance their {Medieval merchants were able to finance their work through work through gathering partners to invest}gathering partners to invest}

• {Manufacturing, banking and {Manufacturing, banking and investinginvesting were were the first steps toward the creation of a the first steps toward the creation of a market market economyeconomy}-land labor and capital are all }-land labor and capital are all controlled by individual persons- and formed the controlled by individual persons- and formed the basis of our capitalist systembasis of our capitalist system

ReviewReview• Pope Urban called on Europeans to Pope Urban called on Europeans to

join in a Crusade against who?join in a Crusade against who?• the decline in trade in medieval the decline in trade in medieval

times was caused by the _______ times was caused by the _______ systemsystem

• Where did most early merchants sold Where did most early merchants sold their goods?their goods?

• Under what system do workers made Under what system do workers made a part of a product in their homes?a part of a product in their homes?

• What was the most important What was the most important purpose of early banks ?purpose of early banks ?

• This is the second This is the second rarest large rarest large carnivore in Africa, carnivore in Africa, next to the next to the Ethiopian wolf. Their Ethiopian wolf. Their scientific name is scientific name is Lycaon PictusLycaon Pictus meaning painted meaning painted wolf. They are wolf. They are cousins of the cousins of the domestic dog and domestic dog and are the only ones in are the only ones in their genus their genus Lycaon. Lycaon. Africans consider Africans consider them to be the them to be the second most second most successful predator successful predator in the world, second in the world, second only to humansonly to humans