ESTABLISHMENT OF COMPANY POWER CHAPTER -2 CLASS 8 Mercantilism and trade war The concept of Mercantilism developed in Europe during the 16th century. the philosophy of introducing imports, while simultaneously increasing exports. The British East India company which entered India as a Trading Company former got full support from the government which not only supported but encouraged its activities. The practice of setting up trading post lead to a mad scramble to colonize countries and establish control and supremacy in these regions The race to colonize created tensions and eventually to war among the European powers, known as the trade war. The Portuguese, British and French for India as a lucrative trading post. The Portuguese were the first to enter India in 1498, with Vasco da Gama discovery of a new sea route to India. British East India company In 1598 a group of English merchants from the Private Association to trade wit
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