Question

What were the reasons for the conflict between the European trading companies and the local rulers?

Answer 1

Instructions:

• Mention the cause of competition among the European trading companies
• Explain the reason why it had conflict with the local rulers

Solution:

1. Competition among the European trading companies pushed up the prices of goods they bought from India.
   This reduced the profits that could be earned. So they tried to eliminate each other
2. The trading companies stocked arms and fortified their settlements since they were in danger of attack from other companies. This did not sit well with local rulers as this challenged their authority and control over their territories.