Question

describe the one way free trade imposed by the East India company in 1813​

Answer 1

Answer:

Charter Act 1813 or East India Company Act 1813 was passed by the British Parliament to renew the charter of British East India Company and continue the rule of the same in India.

Explanation:

The earlier charter act of 1793 had given the East India Company a monopoly to trade with East for a period of 20 years. However, the rise of Napoleon Bonaparte had brought hard days to the businessmen of England. Napoleon Bonaparte had put in place the Berlin decree of 1806 & Milan Decree of 1807, which forbade the import of British goods into European countries allied with or dependent upon France, and thus installed the so called Continental System in Europe.

Due to these hardships, the British Traders demanded entry to the ports of Asia and dissolve the monopoly of the East India Company. Apart from these hardships, the theory of Free trade policy of Adam Smith had also became quite popular in those days. The supporters of this policy started giving arguments on how ending the monopoly of East India Company in trade with India could bring help the growth of British commerce and industry.

However, East India Company opposed these arguments giving logic that its political authority and commercial privileges cannot be separated. The controversy was later resolved by allowing all the British merchants to trade with India under a strict license system.

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