How did increased trade give rise to commercial capitalism?

Increased trade during the medieval and early modern periods led to the accumulation of wealth and the establishment of a merchant class, which fostered the principles of commercial capitalism. As trade networks expanded, merchants gained access to new markets and resources, allowing them to invest in production and distribution. This shift encouraged the development of financial instruments, such as bills of exchange and joint-stock companies, which facilitated larger-scale commercial ventures. Ultimately, the rise of trade stimulated economic growth, leading to a more interconnected global economy and the emergence of capitalism as a dominant economic system.