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Which 'mercantile' principle drove European trading companies of the 17th century, including the East India Company?
AFree competition between European traders
BExcluding competition so they could buy cheap and sell dear
CDistributing profits equally to local rulers
DImporting all goods at the same price
Answer & Solution
Correct answer: B. Excluding competition so they could buy cheap and sell dear
Mercantile companies of the time profited by EXCLUDING competition. The royal charter granted exclusive trading rights to one Company so that it alone could buy at low prices in one region (India) and sell at higher prices in another (Europe). This monopoly logic explains why European powers fought constantly over control of trade routes.
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