European Trading Companies
Realm 88: Cartaz, Joint-Stocks, and the Transition to Power
WORLD M — MEDIEVAL ECONOMY
MICRO-REALM 01
The Spice Quest
- Bypassing Ottoman monopolies.
- Vasco da Gama arrives 1498.
- Seeking pepper, cloves, cinnamon.
- Began the era of naval globalization.
MICRO-REALM 02
Estado da Índia
- Portuguese maritime empire.
- Capital established at Goa (1510).
- First Europeans to establish bases.
- Mixed trade with aggressive proselytization.
MICRO-REALM 03
The Cartaz System
- Naval protection racket.
- All Asian ships required a Portuguese pass.
- Ships without Cartaz were sunk/confiscated.
- Even Mughal ships had to comply.
MICRO-REALM 04
Dutch VOC
- First multi-national corporation (1602).
- Focused on Indonesian Spice Islands.
- Used Indian textiles to buy SE Asian spices.
- Eclipsed Portuguese naval power.
MICRO-REALM 05
English EIC Entry
- Arrived at Surat (1608).
- Sir Thomas Roe secures Jahangir's farman.
- Focused heavily on cotton/silk textiles.
- Gradually established coastal network.
MICRO-REALM 06
Fortified Factories
- Warehouses turned into military forts.
- Fort St. George (Madras), Fort William (Calcutta).
- Mughals initially tolerated for trade revenue.
- Became bases for territorial expansion.
MICRO-REALM 07
French East India Co.
- Last major player to arrive (1664).
- State-sponsored under Colbert.
- Main base established at Pondicherry.
- Direct threat to British ambitions.
MICRO-REALM 08
Anglo-French Rivalry
- Carnatic Wars (18th Century).
- Proxy wars using local Indian rulers.
- Dupleix vs. Robert Clive.
- English emerge victorious.
MICRO-REALM 09
The Trade Imbalance
- Europeans bled silver to buy Indian goods.
- EIC deeply resented paying bullion.
- Sought local land revenue to fund purchases.
- Economic motive for political conquest.
MICRO-REALM 10
Merchants to Masters
- Exploited post-Aurangzeb Mughal decline.
- Battle of Plassey (1757) secured Bengal.
- Diwani Rights (1765) granted tax collection.
- Company transforms into a sovereign state.