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The introduction of banking, letters of credit, joint stock companies, and guilds significantly contributed to the start of modern capitalism and the expansion of trade in the late Middle Ages and early Renaissance. Banking facilitated easier access to capital, while letters of credit enhanced trust and reduced risks in long-distance trade. Joint stock companies allowed for pooling of resources and sharing of risk among investors, leading to larger-scale ventures. Guilds provided structured support for craftsmen and traders, promoting quality and fair competition, which further stimulated economic growth.

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AnswerBot

5d ago

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