Explain Commercial Capitalism.

Commercial capitalism refers to an economic system where economic activity is primarily driven by market-based exchange and profit-seeking through trade and commerce. It emerged during the transition from feudalism to modern capitalism, particularly in the early modern period (16th to 18th centuries).

Key features of commercial capitalism include the expansion of long-distance trade, the rise of a wealthy merchant class, and the development of sophisticated banking and financial institutions. Merchants played a central role in linking distant regions through trade networks, exchanging goods and commodities for profit. This era witnessed the growth of maritime trade routes, such as the Silk Road and the Atlantic trade, facilitating global economic connections.

Commercial capitalism led to increased specialization of production and diversification of goods, as production shifted from subsistence-based to market-driven. It also stimulated urbanization and the growth of commercial agriculture. Additionally, commercial capitalism was often associated with mercantilist policies, where states intervened in economic affairs to promote national wealth and power through tariffs, subsidies, and trade restrictions.

Overall, commercial capitalism set the stage for the Industrial Revolution by fostering innovation, investment, and entrepreneurship. It represents a critical phase in economic history that laid the foundation for modern capitalist economies based on market exchange and profit-driven enterprise.