Name Global History 11 How Did the Commercial Revolution Create Rich European Nations? Document #1 "The voyages of exploration and discovery to Africa and the Americas shifted European trade routes from the Mediterranean Sea to the Atlantic Ocean. This change in trading patterns led to important new economic developments in Europe. These economic changes were so great that they have been called the Commercial Revolution Global Studies: Civilizations of the Past pg. 291 Based on this document, what started the Commercial Revolution? (Use your own words, please!) Document #2 Change #1 The rise of capitalism. Capitalism is an economic system that is based upon two principles. 1. Private citizens own and operate businesses, they may own as much property (houses, clothes, horses, etc) as they can buy. 2. The goal of capitalism is to make the maximum profit possible. Wealthy capitalists often financed the voyages of European explorers. In exchange for lending money to the voyagers, they expected to receive a share of the profits that the voyagers returned with. Imagine that you were a wealthy capitalist looking to invest S5000 on a voyager. Read the following chart and answer the questions that follow. Voyager's Estimated Risk Factor of profit (for every 55000 Captain demanded by the (lowest) - Length of Trip Chris S1000 %10 Estimated Profit invested) King 10 (highest 4 3 years Amerigo 2 years S5000 8 %10 Vasco S2000 8 %10 1 year 5 years John S10,000 9 %10 Note: Risk Factors includes the possible dangers that voyagers faced i.e. bad weather, pirates, poor ship construction, etc 1. Which voyager would you invest your money with? (Remember, maximum profit is your goal!) because that voyage would cam me a profit of per year. 2. Which voyager would earn your investment the lowest profit? would only earn me per year. 3. Which voyager is the safest investment? because 4. What did voyages receive from the King in exchange for a share in their profits? 5. What would happen to your investment if the shipped sank while on its journey home