Identify the technological and economic innovations that facilitated the Commercial Revolution.
mercantilism, joint-stock companies, banks, and insurance companies
navigational technology, joint-stock companies, banks, and insurance companies
navigational technology, joint-stock companies, banks, and loans
navigational technology, joint-stock companies, banks, and exploitation
The correct answer is:
navigational technology, joint-stock companies, banks, and insurance companies
The correct answer is: navigational technology, joint-stock companies, banks, and insurance companies.
The technological and economic innovations that facilitated the Commercial Revolution were navigational technology, joint-stock companies, banks, and insurance companies.
Navigational technology played a crucial role in allowing European powers to explore and establish trade routes to distant lands. Innovations like the compass, astrolabe, and improved shipbuilding techniques enabled sailors to navigate the high seas with confidence and reach new markets.
Joint-stock companies were another major innovation. These were businesses that were owned by multiple shareholders, who would invest money into the company in exchange for a share of the profits. This allowed for large-scale funding of expeditions and trade ventures, reducing the risk for individual investors and ensuring the resources needed for long-distance trade.
Banks also played an important role in the Commercial Revolution. They provided financial services such as lending and borrowing, facilitating trade by providing merchants with the necessary capital. Banks offered letters of credit, which allowed merchants to conduct business without carrying large amounts of physical currency, reducing the risk of theft and making long-distance trade easier.
Insurance companies were another key innovation. As trade expanded, the risks involved in shipping goods over long distances increased significantly. Insurance companies offered coverage against loss, damage, and theft, providing merchants with a safety net and reassuring them that their investments would be protected.
These technological and economic innovations combined to create a favorable environment for trade and economic growth, allowing the Commercial Revolution to take place.