Why did The Commercial Revolution occur?

The Commercial Revolution occurred during the late Middle Ages and into the early modern period due to several factors, including the rise of trade routes, advancements in navigation, and the expansion of European markets. The increasing demand for goods, coupled with the establishment of colonial empires, facilitated the growth of a merchant class and the development of banking systems. Additionally, innovations such as joint-stock companies and improved financial instruments promoted investment and risk-sharing, further stimulating commerce. Together, these elements transformed economies from localized agrarian systems to more interconnected and complex trade networks.