Question

how did expansion in trade lead to colonization in the late 19th century?

Answer 1

• In the year 1600, the East India Company acquired an agreement from Queen Elizabeth I which granted it the sole right to trade in the East.
• ï‚· By early seventeenth century, the Dutch and the French also arrived on the scene.
• ï‚· Eliminating rival competitors was the only way by which trading companies could flourish. This led to fierce battles between trading companies.
  ï‚· Efforts to fortify settlements and carry on profitable trade led to intense conflicts with the local rulers too.
• ï‚· In 1651, on the banks of the river Hugli, the first English factory was set up.
  ï‚· With the expansion of trade, the Company persuaded traders and merchants to come and settle near the factory.
  ï‚· By 1696, the Company started building a fort around the area of settlement.
  ï‚· After two years, the Company bribed the Mughal officials into giving them zamindari rights over three villages. One of the villages was Kalikata (Kolkata).
• After the victory in the Battle of Plassey and Buxar, they received teh Diwani of Bengal
• ï‚· After the Battle of Buxar, the Company started appointing Residents in Indian states and so did teh process of colonization begin.