What was the purpose of multination corporations during the Age of Discovery?
Answer:
To colonize foreign lands to make a profit
To understand the purpose of multinational corporations during the Age of Discovery, it is important to recognize the historical context. The Age of Discovery refers to the period between the 15th and 17th centuries when European explorers ventured out to discover new trade routes and territories around the world. During this time, several European nations established multinational corporations, commonly known as "joint-stock companies" or "chartered companies," to finance and organize expeditions to distant lands.
The primary purpose of these multinational corporations was to seek economic opportunities, expand trade, and ultimately make a profit. Here's an explanation of how they achieved these goals:
1. Trade Expansion: The multinational corporations of the Age of Discovery aimed to expand trade routes and secure access to valuable resources such as spices, silks, and precious metals. By establishing colonies or trading posts in foreign territories, they could gain control over these resources and monopolize their distribution.
2. Exploration and Discovery: European nations sponsored expeditions to discover new lands and establish trade links. These multinational corporations were tasked with exploring uncharted territories, mapping new routes, and establishing contact with indigenous populations for the purpose of trade.
3. Colonization and Settlement: Multinational corporations often played a significant role in colonization efforts. They established settlements and colonies in newly discovered territories, creating a physical presence that enabled them to exploit local resources, establish trade networks, and establish agricultural production for export.
4. Profit and Economic Dominance: The fundamental motive behind these ventures was to generate profits. Multinational corporations relied on private investment, allowing investors to share in the potential returns. By securing resources, establishing trade routes, and monopolizing trade, these companies aimed to dominate regional and global economies, enhancing their wealth and status.
In summary, the primary purpose of multinational corporations during the Age of Discovery was to expand trade, explore new territories, establish colonies, and ultimately generate profits through the exploitation of resources and trade monopolies.