AP World History Practice Exam 2025 – The Comprehensive All-in-One Guide to Exam Success!

The Commercial Revolution is significant in European history as it marked a transformative period of economic expansion that laid the groundwork for modern capitalism. This era, which began in the late Middle Ages and continued into the Renaissance, involved significant changes, including increased trade, the rise of a merchant class, and advancements in banking practices.

The dramatic increase in trade routes, particularly due to exploration and colonial expansion, facilitated the exchange of goods, ideas, and cultures across Europe and beyond. This was paired with the emergence of joint-stock companies and the development of financial institutions, which allowed for the pooling of resources and sharing of risks among investors. Such developments not only enhanced commerce but also boosted urban growth as towns emerged as vibrant centers of trade and economic activity.

This evolution in the economic landscape concentrated wealth in the hands of merchants and traders, contributing to the decline of the rigid feudal class structure and the advancement of a more dynamic, market-based economy. The Commercial Revolution ultimately set the stage for the later Industrial Revolution, propelling Europe into a new phase of economic history characterized by innovation and global trade networks.