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Questions and Answers
Which company was given the exclusive right to trade with the east by Queen Elizabeth I in 1600?
Why were the trading centres established by European trading companies in coastal areas called 'factories'?
Which European countries established trading companies in India from the seventeenth century?
What was the main reason for the intense trade rivalry among European trading companies in India?
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Which two goods were among the primary commodities traded by European companies in India?
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What strategy did European trading companies use to increase their profits over time?
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What was the effect of having multiple European trading companies vying for goods in India?
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What significant event led to the formation of the English East India Company?
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Study Notes
The Expansion of British Power
- India was an important trading center since ancient times, with merchants and traders from Europe and Asia visiting regularly.
- During the medieval period, trade frequency increased, and Indian rulers supported it as it was profitable for them.
- Until the early 17th century, trade was carried out by individual merchants and traders without the backing of their respective countries.
The English East India Company
- The English East India Company was started by a group of merchants in 1600.
- Queen Elizabeth I granted the company a charter, giving it the exclusive right to trade with the East.
- This meant no other English trading group could compete with the company.
Arrival of Trading Companies
- From the 17th century onwards, trading companies from Portugal, Holland, England, France, and Denmark established their bases in India.
- These companies set up their trading centers, called 'factories', in coastal areas, which consisted of offices, godowns, and residential quarters.
- Some factories were fortified over time.
- Companies preferred the coast for setting up their trading centers due to its strategic location for trade.
Trade Rivalry
- The presence of multiple trading companies led to intense rivalry among them, with each company wanting to buy goods at low prices in India and sell them at high prices in Europe.
- The goods in demand included spices, cotton, silk, indigo, saltpetre, and more.
- As profits began to shrink, companies sought to eliminate competitors and establish a trade monopoly.
- The Portuguese and the Danes were eventually ousted from the trade.
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Description
This quiz covers the history of British expansion in India, from ancient trade routes to the establishment of the English East India Company.
