Which of the following tactics did the EIC use to monopolize trade in India
The East India Company (EIC) used various tactics to monopolize trade in India. Some of these tactics include:
1. Establishing trading posts: The EIC set up fortified trading posts along the Indian coastline and in key port cities such as Madras (Chennai), Calcutta (Kolkata), and Bombay (Mumbai). These posts served as centers of trade and helped the EIC control commerce in the region.
2. Forging alliances and acquiring territories: The EIC developed alliances with local rulers and acquired territories through treaties, military force, or manipulation. By gaining control over territories, they were able to regulate trade and collect taxes, thereby monopolizing key trade routes and resources.
3. Eliminating competition: The EIC used various methods to eliminate competition from other European powers and local traders. They engaged in aggressive trade practices, undercutting prices to drive competitors out of business. They also used their military strength to forcefully suppress rivals or secure trade deals advantageous to them.
4. Creating a monopoly on key commodities: The EIC focused on monopolizing the trade of important Indian commodities like textiles, indigo, opium, and spices. They often established strict control over the production, export, and distribution of these goods, ensuring that they had a monopoly over their trade.
5. Manipulating the political landscape: The EIC actively involved themselves in local politics and manipulated the political landscape of India to serve their economic interests. This included supporting or overthrowing rulers depending on their alignment with EIC's trade ambitions and exploiting divisions among Indian rulers to weaken potential rivals.
6. Utilizing military and naval power: The EIC had its own private army and navy, which they utilized to protect their trading posts, secure territories, and conduct military campaigns against rivals. Their military strength played a crucial role in establishing and maintaining their monopoly over trade in India.
Overall, the EIC employed a combination of diplomatic alliances, military force, strategic acquisition, and market manipulation to establish their monopoly over trade in India.