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Standard XI
Business Studies
Benefits of International Business to Nations
Why did the N...
Question

Why did the Nayak of Tanjore allow the Danes to establish a port in Tranquebar?

A
For military assistance
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B
For financial assistance
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C
To establish bilateral relations
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D
For trading opportunities
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Solution

The correct option is D For trading opportunities
Tranquebar was the first Danish trading post in India established in 1620. King Christian IV had sent his envoy Ove Gjedde who established contact with Raghunatha Nayak of Tanjore. The Nayak turned out to be interested in trading opportunities and negotiated a treaty granting them the village of Tranquebar.

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