Expansion of World Trade


 
 
Concept Explanation
 

Expansion of World Trade

Expansion of World Trade: World trade had expanded at a very fast rate during the 17th and 18th century. The producers in the towns failed to produce the required quantity. Merchants could expand production within towns as urban crafts and trade guilds were very powerful. They restricted the entry of new people into the trade. These guilds trained people controlled the production and regulated competition and price. Different guilds were granted the rights of production and trade for a specific product by the rulers. The new merchants moved to the countryside as they found difficulty in setting up business towns. They supplied money to the poor peasants and artisans and persuaded them produce for an international market.

Guilds :- An association of skilled workers that maintained control over production, regulated competition and prices in the trade of specific products . 

 
 


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