state the reasons for which the profit of the European trading companies reduced
Answers
Answer:
While fine qualities of cotton and silk had a huge market in England, pepper, cloves, cinnamon and cardamom too were highly sought after by European buyers. Competition among them was fierce and this pushed up the purchase prices of these goods. This inevitably reduced the volume of profits which could be earned
Answer:
Explanation:
TRADING COMPANIES. The early seventeenth century saw the foundation of Dutch and English trading companies with exclusive rights over vast areas in various parts of the globe. These organizations were essentially merchant guilds that represented an "institutional innovation" that enabled them to conduct large-scale trade with distant shores. They came to exercise functions that were usually the prerogative of national states. The main companies were the East India Company, or EIC (1600–1858), the Hudson's Bay Company (founded in 1670 and still active) and the Royal African Company (1672–1750), all English, as well as the Dutch East India Company, or VOC (Vereenigde Oost-Indische Compagnie, 1602–1799) and the Dutch West India Company, or WIC (1621–1791). Imitation companies were established in numerous states, including Denmark, France, Genoa, Portugal, and Sweden.
Hope this helps plz mark me as the brainliest