Notes

Sec 2.
After the collapse of the roman empire in the 400s,trade almost died out in western europe. Towns and cities that heavily depended on trade and manufacturing, shrank in population.
Becouse of the crusades trade began to grow again in europe. Italy was the earliest site of this trade revival. German cities on the baltic and north seas also became important trading centers. the most important was Breman, hamburg, and lubeck. Europeans demand for goods from asia increased especially the exotic or new goods. the system of manufacturing that developed during the middle age was called the domestic system.manufacturing took place in workers homes other than shops or factories. a good example was the woolen industry. an individual would bye wool then hand it out to workers.
capital is wealth that is earned, saved, and invested to make profits. christians didnt allow usury or charging intrest on loans. manufacturing, banking, and investing capital were the first steps toward the creation of a market economy. in time skilled workers came together in craft guilds--