Question

What is monopoly of trade?

Answer 1

to have full or complete control over the trade.

Answer 2

Answer:

Monopoly - exclusive control over the supply or trade of a product.

Explanation:

The factories were engaged in trade.

Goods such as spices, cloth, Indigo (a dark blue dye) and Silk were in great demand in Europe.

The factories bought these items from India at low prices and sold them at high prices in Europe and America.

Since profits from this trade were huge, many European countries vied greater share of this trade.

However, the quantum of trade was not sufficient to sustain all the companies.

Over a period of time, the profits earned by the companies began to shrink.

The only way to increase profits was by eliminating competitors nd ensuring a trade monopoly.