

How Trade Helps Development of Cities?
Trades in a city play an important role in spreading goods over the world. Major trade routes across the world are the Silk Road and the Indian Ocean trade routes. The cities with a large population, easy and major access to all the necessary resources like food and goods and developed a complex network of roads and trades at the natural centers of urbanization will automatically support the development and growth of trades. The best example of the most important trading cities in Hangzhou, Timbuktu, and Malacca.
All these cities are located in strategic locations with major waterways and roadways for facilitating the traders. This article explains how the major trading cities developed and the impact of urbanizations in detail.
Key Concepts: Development of New Trading Cities
Hangzhou
Hangzhou is a popular port in China and it is surrounded by rolling hills and mountains. So, many poets represent Hangzhou as “the paradise on the earth”. In the late thirteenth century, an Italian explorer, Marco Polo, visited the city in his middle age. During that time, he noticed millions of people rushing and exchanging their goods and products. Native people of Hangzhou enjoyed the surpluses of fish, rice, and other goods in the city. They have utilized all the products of China within the city.
Even foreign merchants of the city enjoyed their own quarter or house in the city. At that time, Marco Polo got impressed by the Grand Canal, which is the world’s largest artificial river with the age of 600 years in the 13th century. Through this canal, people could travel around 800 miles. The main purpose of the Grand Canal was to transport grains to Beijing. This canal helped China to easily connect with global traders and also helped China to actively participate in global trade. Hangzhou was located at the southernmost stop of the Grand Canal and east of the China sea. So, the city emerged as the natural center for trade and can easily access the ocean and maritime trade routes. During the thirteenth century, the Song dynasty ruled the city with the capital of Hangzhou.
The Song dynasty had a strong economic structure and successfully ruled Hangzhou for the long term. The song dynasty mainly concentrated on producing surplus food and goods like rice, porcelain, silk, iron, steel, gunpowder, and paper. Also, people and merchants from Hangzhou sent their goods to various cities across the world through the silk road and other maritime trade routes via the Indian ocean. Hangzhou was the popular city to supply Spices to China from South Asia.
Timbuktu
Timbuktu or Tombouctou is another well-known trade city, which lies in a strategic location. Timbuktu is located in the Mali of West Africa and is situated on the bank of River Niger, which links North Africa with tropical regions farther south. From the thirteenth century to the fifteenth century, Timbuktu city was a part of the Mali empire. At that time, Malian rulers collected taxes for trades that passed through their range. So that they increased the wealth of the empire. People from North Africa named the city as an economically stable city and peaceful center for traders. Malian rulers invited Muslim scholars from various places across the world and offered places to eat and sleep to encourage learning.
The most valuable trade items that passed through Timbuktu are rock salt from Saharan pans and Gold from the south city called Ghana. Imprisoned people also choose the same route for exchanging their goods. The traders from North Africa mostly used these routes for reaching Saharan salt mines. Also, non-muslim people were chosen this path for reaching the southern part of Africa. Meanwhile, Timbuktu helped goods to travel from north to south. Timbuktu remains as the head of the south to trade horses, books, weapons, and brass bowls from North Africa. The massive camel caravans supported the trade between Mali and North Africa and the canal has about 25,000 camels.
Timbuktu city played an influential part in the African trade system. As Timbuktu city provided huge returns to the Mali empire in terms of tax on trade goods, the empire became economically stable and Also, it provided the necessary peaceful environment for making a trade. In addition, Malian rulers encouraged scholars to settle in the city for supporting both learning and trade.
Malacca
Malacca, which is also known as Melaka is another popular city for making a trade. This city is currently called Malaysia. In the 1390s, Malacca city was established as a port city, by laying one end of a straight narrow passage, which connects two big water bodies. The location of Malacca was also known as a maritime chokepoint. This transport route made transportation easy. The shortest path between China and India is the Strait of Malacca, so people and merchants used this trade route for all transportation.
Malacca was an independent Muslim state, which was under the control of the Malacca sultanate. The Malacca sultanate also took various measures to create safe waterways. They also oversaw and controlled the traffic through the straits. The native residents near the Strait of Malacca, Orang Laut, or sea people also received pay from Malacca rulers to look over the transportation along the strait. Orang Laut also guided the merchants and travelers, who are traveling to the city of Malacca. So, travel to Malacca was usually considered a safe travel and trade destination. The taxes collected through trade helped Malacca rulers to maintain the stabilized economy and to flourish the city.
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Impacts of Urbanization
By Urbanizing the cities like Hangzhou, Timbuktu, and Malacca. People around the city can easily access the wealth, knowledge and goods from far places. The taxes collected on trades eventually increased the wealth of the empire and city. The trading cities were providing huge job opportunities for native residents and also for migrants. But, urban areas have fewer healthy places for human habitat because of high pollution. Also, these cities remain the best place for exchanging cultures, ideas, and technological innovations on a large scale. These are the impacts of urbanization.
This article gave complete information about the development of new trading cities and key concepts behind the development of new trading cities with the advantages of trading cities in detail.
FAQs on Development of New Trading Cities
1. How did the growth of trade lead to the development of new cities?
The growth of trade was a primary driver for the development of new cities. As trade routes became more established, locations that were strategically placed—such as ports, riverbanks, or major crossroads—naturally grew. Merchants and travellers would stop at these points to rest, restock, and exchange goods. Over time, these stops attracted more people, including craftspersons, artisans, and service providers, leading to the formation of bustling towns and eventually, large cities. You can learn more about how towns and trade grew in the medieval period.
2. What were some important trading cities that grew because of the Silk Road?
The Silk Road was a vast network of trade routes connecting the East and West, and several important cities emerged along it. Two prominent examples are Kashgar and Samarkand. These cities served as crucial hubs where merchants from different cultures, such as Chinese, Indian, Persian, and European, could meet. They exchanged goods like silk, spices, precious metals, and textiles, which boosted their economic and cultural significance.
3. What role did 'shrenis' or guilds play in ancient Indian trading towns?
'Shrenis', or guilds, were powerful associations of craftspersons and merchants in ancient India that played a vital role in the economy of trading towns. Their key functions included:
- Procuring raw materials for their members.
- Organising the production and distribution of finished goods.
- Setting quality standards and prices for their products.
- Functioning as banks, where they accepted deposits and provided loans to traders.
4. Besides goods, what else was exchanged along trade routes and why was it important?
While goods were the main items of trade, the exchange of ideas, knowledge, and cultures was an equally important outcome, a process known as cultural diffusion. As traders and travellers from different parts of the world interacted in trading cities, they also shared:
- Religious beliefs: Buddhism, for instance, spread from India to other parts of Asia along these routes.
- Technological skills: New techniques in pottery, weaving, or metalwork were passed on.
- Languages and customs: People learned new words and social practices from one another.
5. Why was a city like Mathura an important urban centre in ancient India?
Mathura became an extremely important urban centre in ancient India for several reasons. Strategically, it was located at the crossroads of two major trade and travel routes—one from the northwest to the east and another from north to south, making it a bustling hub for traders. Additionally, Mathura was a significant religious centre for Hindus, Buddhists, and Jains, attracting many pilgrims who also contributed to its economy. It was also a famous centre for producing fine sculptures and crafts. You can find more details in the NCERT Solutions for Class 6 History Chapter 8.
6. How did the development of trading cities change the lives of people who were not merchants?
The growth of trading cities profoundly impacted all levels of society, not just merchants.
- Craftspersons: They found a large and growing market for their goods, such as pottery, textiles, and jewellery. Guilds or 'shrenis' helped them organize and scale their production.
- Farmers: They could sell their surplus crops to the growing urban population that was not engaged in farming, providing them with a reliable source of income.
- Labourers: New construction projects for forts, roads, religious buildings, and houses created many employment opportunities.
7. What challenges did traders face on long-distance routes that made trading cities essential?
Traders on long-distance journeys faced numerous challenges, which made well-defended trading cities essential for their survival and success. These challenges included:
- Dangerous Terrain: They had to cross inhospitable deserts, high mountains, or rough seas.
- Bandits and Pirates: Traders were often targeted by robbers who sought to steal their valuable goods.
- Lack of Supplies: It was difficult to carry enough food, water, and animal fodder for the entire trip.
8. What kind of evidence do archaeologists use to learn about ancient trading cities?
Archaeologists use various forms of material evidence to understand the history of ancient trading cities. Key findings that act as historical sources include:
- Pottery: The discovery of specific types of pottery, like the Northern Black Polished Ware, indicates a high level of craftsmanship and active trade.
- Coins: Punch-marked coins found at various sites suggest the existence of a monetary system and widespread trade networks.
- Foreign Objects: Finding items like Roman amphorae (jars) or Arretine ware in Indian sites like Arikamedu is direct proof of long-distance sea trade.
- Structural Remains: The ruins of warehouses, docks, and marketplaces provide direct evidence of commercial activities.

















