Impact: Trade and the Commercial Revolution
Although the Crusades failed militarily, they revived long-distance trade between Europe and the Middle East as returning soldiers created demand for Eastern goods like spices, sugar, silk, and cotton, as covered in Pengi Social Studies Grade 7, Chapter 7: Medieval Europe. Italian city-states like Venice and Genoa grew fabulously wealthy controlling this trade, and the new banking and credit systems that developed to handle money flows triggered a Commercial Revolution.
Key Concepts
Although the Crusades failed militarily, they transformed Europe economically. Returning soldiers brought back tastes for Eastern goods: spices (pepper, cinnamon), sugar, silk, and cotton. This demand revived long distance Trade between Europe and the Middle East.
Italian city states like Venice and Genoa controlled this trade and grew incredibly rich. To handle the flow of money, new banking systems and credit developed, leading to a Commercial Revolution . This rise of trade helped grow towns and weakened the isolation of the feudal manor system.
Common Questions
How did the Crusades affect trade in medieval Europe?
Though the Crusades failed militarily, they created a European taste for Eastern goods like spices, silk, and sugar, reviving long-distance trade between Europe and the Middle East.
What was the Commercial Revolution?
The Commercial Revolution was the rise of trade, banking, and commerce in medieval Europe, triggered by Crusaders demand for Eastern goods and the Italian city-states control of Mediterranean trade routes.
Why did Venice and Genoa become so wealthy?
Venice and Genoa grew wealthy by controlling the lucrative trade routes between Europe and the Middle East, acting as middlemen for the Eastern luxury goods that Europeans craved after the Crusades.
How did trade affect the feudal system?
The revival of trade helped towns grow, weakened the isolation of feudal manors, and created a merchant class whose wealth was not based on land, gradually eroding the economic foundations of feudalism.
What banking innovations came from the Commercial Revolution?
The need to handle large flows of money across distances led to innovations in banking, credit systems, letters of credit, and currency exchange that formed the basis of modern financial institutions.