Question

Why did the European trading companies set up a trade centres in coastal areas ?

Answer 1

European trading companies set up trade centres in coastal areas so that they can export goods from India at cheaper rates and sell them in their country at high prices. The coast sea routes also made the trade easier and convenient. The goods that were traded through sea included handlooms, saltpeter, spices, etc.

Answer 2

Because of following reason:

• Availability of resources such a as electricity , water

• Availability of raw material

• Availability of cheap labour