Which of the following statements best explains the motivations for creating the EIC?

Question

a. Mercantilist policies saw economic strength and the protection of trade as key to national security.
b. The British government wanted to conquer the Mughal Empire by gaining the support of local nawabs.
c. The Mughal Empire was monopolizing trade with Europe, which threatened the British.
d. The Industrial Revolution allowed for the creation of new ship designs and navigation technologies.

Answer 1

The statement that best explains the motivations for creating the East India Company (EIC) is:

a. Mercantilist policies saw economic strength and the protection of trade as key to national security.

Mercantilism was the prevailing economic theory during the time of the EIC's establishment, and it emphasized the importance of accumulating wealth, particularly in the form of gold and silver, and protecting trade to enhance national power. The EIC was established to secure trade routes, manage trade profits, and strengthen Britain's economic position globally.