Commercial RevolutionThe European Exploration established many colonies in Africa and the Americas.A new reservoir of revenue became readily avenue sparking the Commercial Revolution.Raw materials, gold, and other precious metals poured into Europe, eventually becomingmanufactured goods. Slaves became a source of cheap labor and many Europeans spreadEurope's economic policies when they settled in the colonies. Mercantilism, which statedthat a colony's purpose was to benefit the mother country, shaped Europe duringthroughout the revolution. From 1492 to 1870 a new gold-salt and silk trade were established, creating aninternational economy. Most of the gold and salt came from Africa while Asia was themajor silk exporter. New business rules were because of the influx of money. Joint-stockcompanies, as well as insurance companies, were created. Joint-stock ventures were nowinsured for damages that any of their ships suffered. There was a new banking system,becoming more prominent than the system set up by the Medicis during the early 1400s.Gold and silver coins were replaced by paper currency and bank credits were beingintroduced. The stockmarket was born, drawing its life force from joint-stock companiesand their speculations. Monopolies arose when joint-stock companies incorporated witheach other. Some of the European companies tried to stop the rise of monopolies.England passed the Bubble Act restricted the rights of joint-stock companies toincorporate with each other. Economic competition found a new intensity which it neverhad before. The economic bourgeoisie rose to power through entrepreneurial business.Social and political revolutions, as well as the Industrial Revolution, planted the roots ofmodern capitalism. The Commercial Revolution continued into the 1900s with the spark of European

Imperialism. The "Mad scramble for Africa" could best be related to bees in the spring.In the spring, flowers start blooming causing the bees to rapidly drink up their nectar. Inthe same way, the Age of Exploration and Commercial Revolution were the springboardsof the "Mad scramble". European countries went into the exterior of the blossomingcontinent and began tapping into its nectar: natural resources. Third world countries cameinto existence while European countries fought over trade agreements and resources.London became the financial capital of the world. Post War World II saw the last of colonial empires fall. Conglomerates becamethe new empires of modern society. Nations had to play by conglomerate rules. Amaterialistic society became even more dependent on the economy. Many third worldnations were suffering while Asian countries started to manufacture more goods, shiftingjobs away from many European nations. Economic competition was heated. In 1993 and1994 the North Atlantic Free Trade Agreement and General Agreement on Trade andTariff were passed to help ease these economic tensions. They lowered tariffs and set upquotas allowing for trade with less trouble. The domestic system, created at the beginningof the revolution, had finally became the dominant policy of Europe but the rest of theworld. The Commercial Revolution lasted from the 1400s to present times. It gave rise tomercantilism and eventually planted the seeds that would rid many countries ofcommunism. The face of Europe was changed forever when the Commercial Revolutionprovided the capital that was needed to start the Industrial Revolution. Today, theCommercial Revolution is still strong with the introduction of Silicone Valley, the era ofthe information highway, and the world of computers.