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Which of the following was the reason for the fierce battle among various trading companies of British, Portuguese, Dutch and French in India?
  • a)
    Internal rivalry and maladministration within trading companies.
  • b)
    Local Rajas and Nawabs favouring only one of the companies.
  • c)
    The decreasing profit margin due to severe competition among trading companies.
  • d)
    Fortification of ports.
Correct answer is option 'C'. Can you explain this answer?
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Which of the following was the reason for the fierce battle among var...
The fine qualities of cotton and silk produced in India had a big market in Europe. Pepper, cloves, cardamom and cinnamon too were in great demand. Competition amongst the European companies inevitably pushed up the prices at which these goods could be purchased, and this reduced the profits that could be earned. The problem was that all the companies were interested in buying the same things. The only way the trading companies could flourish was by eliminating rival competitors. The urge to secure markets therefore led to fierce battles between the trading companies. Through the seventeenth and eighteenth centuries they regularly sank each other’s ships, blockaded routes, and prevented rival ships from moving with supplies of goods. Trade was carried on with arms and trading posts were protected through fortification.
  • Statement 1 is incorrect as maladministration within the trading companies led to losses for the companies but did not give rise to rivalries.
  • Statement 2 is incorrect as many companies wanted to be in the good books of the Rajas and Nawabs to get favourable trading conditions and the Rajas and Nawabs supported most of the companies that came to trade without favouring one or the other.
  • Statement 4 is incorrect as it was a consequence of the rivalry and not the cause.
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Which of the following was the reason for the fierce battle among var...
Reasons for the fierce battle among various trading companies in India:

There were several reasons for the fierce battle among the British, Portuguese, Dutch, and French trading companies in India. The correct answer, option C, highlights the decreasing profit margin due to severe competition among trading companies. Let's explore this and other reasons in detail:

1. Decreasing profit margin:
- The primary motive of these trading companies was to maximize their profits by establishing a monopoly over the Indian trade.
- As more European trading companies entered the Indian market, competition intensified, leading to a decrease in profit margins.
- Each company tried to outdo the others by offering better quality products, lower prices, and more favorable terms to Indian merchants and rulers.
- This fierce competition resulted in a constant struggle to control trade routes and markets, leading to conflicts and battles.

2. Internal rivalry and maladministration within trading companies:
- The trading companies, such as the British East India Company, Portuguese East India Company, Dutch East India Company, and French East India Company, had internal rivalries and conflicts.
- Different factions within these companies competed for control and dominance, which often resulted in battles and power struggles.
- The internal maladministration and corruption within these companies further fueled the conflicts among them.

3. Local Rajas and Nawabs favoring one company:
- The local Indian rulers, such as Rajas and Nawabs, played a significant role in the battles among the trading companies.
- These rulers often favored one trading company over the others by granting them exclusive trading rights, tax exemptions, or military support.
- This favoritism created a sense of rivalry and resentment among the trading companies, leading to battles to gain the favor of local rulers.

4. Fortification of ports:
- The trading companies realized the strategic importance of controlling key ports and trade centers along the Indian coast.
- They fortified these ports with military installations to protect their trade interests and maintain dominance over the region.
- The fortification of ports by different trading companies often resulted in clashes and conflicts as they tried to assert their control over these strategic locations.

In conclusion, the decreasing profit margin due to severe competition among trading companies was one of the primary reasons for the fierce battles in India. However, internal rivalry, local rulers' favoritism, and fortification of ports also contributed to the conflicts among the British, Portuguese, Dutch, and French trading companies.
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Which of the following was the reason for the fierce battle among various trading companies of British, Portuguese, Dutch and French in India?a)Internal rivalry and maladministration within trading companies.b)Local Rajas and Nawabs favouring only one of the companies.c)The decreasing profit margin due to severe competition among trading companies.d)Fortification of ports.Correct answer is option 'C'. Can you explain this answer?
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