CBSE Class 8 Answered

The trade settlements for the English east India Company were established in the following ways:

• Mercantile trading companies like the East India Company in those days made profit primarily by excluding competition, so that they could buy cheap and sell costly. So it established its trade settlements in India by eliminating competition in the home territory.
• The East India Company also forced the Mughal Emperors to grant them ‘farmans’ to trade duty-free.
• The Company later fought wars with various Indian princes and states to maintain political and economic control over them.