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  • 2017
  • Working Paper
  • HBS Working Paper Series

Merchants and the Origins of Capitalism

By: Sophus A. Reinert and Robert Fredona
  • Format:Print
  • | Language:English
  • | Pages:38
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Abstract

N.S.B. Gras, the father of Business History in the United States, argued that the era of mercantile capitalism was defined by the figure of the “sedentary merchant,” who managed his business from home, using correspondence and intermediaries, in contrast to the earlier “traveling merchant,” who accompanied his own goods to trade fairs. Taking this concept as its point of departure, this essay focuses on the predominantly Italian merchants who controlled the long-distance East-West trade of the Mediterranean during the Middle Ages and Renaissance. Until the opening of the Atlantic trade, the Mediterranean was Europe’s most important commercial zone, its trade enriched European civilization, and its merchants developed the most important premodern mercantile innovations, from maritime insurance contracts and partnership agreements to the bill of exchange and double-entry bookkeeping. Emerging from literate and numerate cultures, these merchants left behind an abundance of records that allow us to understand how their companies, especially the largest of them, were organized and managed. These techniques can also be put in the context of premodern attitudes toward commerce and the era’s commercial-political relations. The Commercial Revolution anticipated the Industrial Revolution by over half a millennium and laid the groundwork for today’s world of global business.

Keywords

Economic Systems; History; Business History

Citation

Reinert, Sophus A., and Robert Fredona. "Merchants and the Origins of Capitalism." Harvard Business School Working Paper, No. 18-021, September 2017. (Forthcoming in Routledge Companion to the Makers of Global Business. Edited by Teresa da Silva Lopes, Christina Lubinski, Heidi Tworek (2018).)
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About The Author

Sophus A. Reinert

Business, Government and the International Economy
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Related Work

    • 2019
    • Faculty Research

    Merchants and the Origins of Capitalism

    By: Sophus A. Reinert and Robert Fredona
Related Work
  • Merchants and the Origins of Capitalism By: Sophus A. Reinert and Robert Fredona
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