The development of trade overseas Flashcards
Eng east india company found in 1660 2 years later ddutch east india company was formed both dealth with spices + recieved same prices however the dutched company profits were higher why?
1) Dutch company had close ties
Anglo-Dutch rivalry
Rivals for trade in the East (English East India Company 1600 vs Dutch United East India Company 1602).
Both were involved in the spice trade in India and Indonesia.
-India was a lucrative source of trade for Britain.
Rivalry over access to English fishing grounds; 1/5th of Dutch population were employed in fishing and relied on fisheries off the British coast.
Rivalry over American colonies; rivals for the European cloth trade.
Why was the East India Company established?
To establish English economic interest in Asia.
Originally given its own private army to protect its trading interests alongside the fleet it already possessed.
Why was the East India Company established?
To establish English economic interest in Asia.
Originally given its own private army to protect its trading interests alongside the fleet it already possessed.
What was the role of the EIC in the 1620’s?
Became the focus of trade.
Pepper, tea and textiles were main goods traded.Became the focus of trade.
Pepper, tea and textiles were main goods traded.
east india company ports in?
Basra, Mumbai
Position of EIC by 1700
Before 1640, Company handled trade worth £100,000 per year but by 1700, more than £700,000 partly as established control of highly profitable tea and coffee trade.
How did the Restoration strengthen the EIC’s position?
Privileges extended by Charles II, issue own coinage, acquire territories and make war without consent of British government.
Charles II’s marriage to Catherine (dowry) of Braganza brought with it the islands of Bombay, which the King rented to the company for £10 a year.
Company became a popular investment for courtiers and elite so annual profits exceeded £600,000 by 1680s.
Significance of EIC
Key to advancement of trade in the East and crucial in ensuring the English were able to compete with major European powers.
How did Dutch dominate trade with world markets before 1650?How did Dutch dominate trade with world markets before 1650?
Dutch ended war with Spain in 1647 and economy prospered while English economy hit a new low due to general depression, impact of CW and execution of Charles I.
Triangular trade
Movement of slaves from West Africa to the Caribbean or America and the transport of goods such as cotton from these regions back to England.
What was the Royal African Company?
Established in 1672, had own army, military bases and trading posts across entire West African coast.
When did England become involved in the triangular slave trade?
Later 17th century, with nearly 120,000 slaves in the Caribbean by 1700.
Significance of Royal African Company
By 1680’s, 50,000 slaves a year transported to Caribbean and North America.
Profits from trade were significant and added massively to wealth of London after 1660.
‘Guinea’ coin first minted in 1663 and named after part of Africa where Britain’s gold and slave supply located.
Position of Britain by 1713
Britain controlled approximately half of the entire transatlantic slave trade.
