During the Medieval times, people were able to travel more to other countries to trade goods. Western Europe's growth in trade happened during this time.
New trade routes were established to Asia, due to the Crusades. People wanted to avoid the established trade routes going through the Mediterranean, because prices were very high and it was dangerous.
Many countries established colonies and trading posts to provide for additional raw materials and foodstuffs.
Trading posts were free-trade zones and were called "factories". Western Europe established trading posts in Asia, Africa, and the Americas during the 1500's. These trading posts were not only to sell goods and warehouse their inventory, but it also served as the headquarters for defense.