Question

Based between the 11th and 17th centuries, Did the commodites encourage foreign or national envestment, besides private capital, and what difference did the investment make?

Answer 1

Commodity markets have existed for centuries around the world because producers and buyers of foodstuffs and other items have always needed a common place to trade.

In the late 11th and the late 13th century, English urbanization, regional specialization, expanded and improved infrastructure, the increased use of coinage and the creation of markets and fairs. The spread of markets is illustrated by the 1466 installation of reliable scales in the villages of Sloten and Osdorp so villagers no longer had to travel to Haarlem or Amsterdam to weigh their locally produced cheese and butter.

The Amsterdam Stock Exchange, often cited as the first stock exchange, originated as a market for the exchange of commodities. Early trading on the Amsterdam Stock Exchange often involved the use of very contracts, including short sales, forward contracts, and options. "Trading took place at the Amsterdam Bourse, an open aired venue, which was created as a commodity exchange in 1530 and rebuilt in 1608. Commodity exchanges themselves were a relatively recent invention, existing in only a handful of cities.

Following the Glorious Revolution of 1688, many of the speculative practices used in Amsterdam were adopted in England where stock trading had a highly developed spot market by the mid-1690s. Dutch investors and speculators also conducted a considerable amount of their British securities trading outside the Amsterdam bourse at various locations in London, such as on the Royal Exchange and in Exchange Alley where curb and coffee house trading was conducted. Trading in stock options was also widespread though the full impact of option trading in the market events such as the collapse of 1696 or the infamous South Sea Bubble is unclear.

Futures Trading dates back to 17 ^th Century Japan. The first ever case noted concerned rice and silk, and similarly in Holland with tulip bulbs. This helped laying the foundations of modern financial system. This increased the investments of foreign nation and increase in intercontinental trade.