Development of trade and commerce Flashcards
how did organisation of trade and commerce change?
joint stock system- investors were investing in the company as a whole, not individuals
this reduced the risk but also the potentiality of huge gains
allowed smaller investments which allowed more of the population to invest
what years did trading companies thrive?
1600-1783
what did the development of the joint stock system provide
matched the needs of the trading companies and also aided their development
provided a model for investment whereby investors invested in the company and not an individual ship
what were factors?
men who were charged with the actual trade with the native populations- set up in the places they traded with to make trade more efficient
why were factors an important development?
when goods arrived the traders did not have to seek out natives with which to trade, strike deals and agree prices
what was set up by 1620?
factories- been set up in a number of key trading ports
by 1709, where were there factories?
Gulf of Gombroon (Iran), Basra in Bombay, Madras and Calcutta in India, Bantam and Java
why were factories an important development?
beginning of permanent European bases overseas
what was Wallerstein’s Theory?
factories had a profound impact on local trade, they informally influenced the society and economy around them
what was the importance of trading companies to Britain?
by the 1690s is was recognised that the needs of trading companies and the British nation were identified as being one and the same
how was investment stimulated and ensured?
longer charters
tightening up privileges awarded to the companies so that their profits were protected
