What were trade wars? What methods were adopted by the European trading companies for the
control of trade?
Answers
Answer:
Explanation:
A trade war is an economic conflict resulting from extreme protectionism in which states raise or create tariffs or other trade barriers against each other in response to trade barriers created by the other party. Increased protection causes both nations' output compositions to move towards their autarky position.
The breakthrough by the Portuguese navigator, Vasco da Gama, to the East in 1499 opened up for the first time the prospect of European control of the Silk and Spice Routes. Their established hegemony over the trade routes was not challenged until the end of the sixteenth century, when Dutch and English forces became a threat. The Dutch United East India Company and its rival, the British East India Company, are testaments to the many conflicting political and economic interests of European countries that were played out on distant shores along these routes.