Creation of a Global Economic System
A new trade pattern emerged, when the older regional exchange system was replaced with the Western style of doing business.
- The Company took over the tax revenue collection, who helped finance its wars in other parts of India.
- India was not anymore an exporter of processed goods, but became an exporter of raw materials and an importer of manufactured goods.
- The British cotton industry was the main supplier of manufactured goods (especially cloth) for India. The Americans provided the cotton for the British industry, which in turn provided the Indian population with cloth.
- Once The Company Rule emerged, the British merchants put pressure on Indian governments to allow trade in the area.
- Merchants used agency-houses on the coast of India set in the ports, to sell their products (e.g. Calcutta).
- During this period, India defined its role as a main exporter of opium for China.
- Creation of financial infrastructure such as banks, loans and credits made exports and imports easier for The Company.