The east india and hudsons bay

companies LESSON - 7
 LEARNING OBJECTIVES
2 min

 To Explain about the The East India and Hudson’s Bay Companies
 To Explain how a ‘joint-stock’ company functioned
and the importance of investment in making a company
successful.
 To Explain some of the factors involved in the pricing of products

Write the LOB

in Notebook
 New Terms
NB Work

 peak
 to found
 Charter
 Monopoly
 Bullion
 Fertilizer
 trading post
 retail 5min
 Stage 1
Starte
r
The pictures on the top
are of the first company in
North America, the
Hudson’s Bay Company,
from 1824 CE. The
pictures on the bottom
are of the same company
today. What differences
can you see? Write your
ideas.

ACP’s –
Linking and connection finding
 Stage 2 Experience 7 Mins

Overseas trading reached a peak in the 15th and 16th centuries. One of the most successful trading
countries was England. English trading ships had travelled to nearly every corner of the globe,
searching for new products and commodities to trade. As overseas trading flourished, new
companies were founded to take advantage of this. The East India Company began in 1599 CE. A
group of merchants asked Queen Elizabeth I for money to help them sail to the East Indies, near
present-day Central America. The queen agreed to fund their voyage, and even signed a charter that
gave the merchants exclusive trading rights in the East Indies. This charter was a powerful
document. It not only gave the new company a monopoly on all trade between England and the East
Indies, but allowed the company’s ships to carry large amounts of bullion to trade with. This charter
also one of the first of a new kind of financial organization: a joint-stock company. In a joint-stock
company, outside investors can buy ‘stock’ or ‘shares’ of the company. Then, when the company
makes a profit, it gives some of that profit back to its investors. The East India Company was the first
European company to sell shares to investors. This new approach to profit sharing, along with its
monopoly, helped make the the East India Company controlled nearly half of the world’s trade.
 5 Mins
Stage 2
The company finally closed in 1874 CE. The East India
Company traded mainly cotton, silk, saltpetre (which is
used in gunpowder and fertilizer), and tea. However,
these were not the only products that were profitable in
Europe. As we saw earlier, fur was becoming a very
popular fashion item. Another British company, called the
Hudson’s Bay Company, was formed in 1670 CE and
given full trading rights to huge areas of Canada. The
Hudson’s Bay Company set up small trading posts all
around Hudson Bay and James Bay in central Canada. As
it became more successful, the company expanded all the
way across Canada. By 1837 CE, the company had
expanded into the U.S., all the way down to present-day
Oregon. More than three hundred years later, the
Hudson’s Bay Company still exists in Canada. It doesn’t
trade furs anymore. Instead, it has become one of
 Stage 2- Cognition- Task I
NB Work
The East India Company was not just an economic enterprise. It was a political one, too. Through the
actions of the East India Company, Britain was able to establish a political empire in India.

By 1720 CE, 5% of British imports came from India, through the East India Company

The East India Company set up many factories all over India and gained a lot of economic strength.

The East India Company became the ruler of all of India

The Queen of England gave the East India Company exclusive trading rights in India.

The East India Company used its wealth to develop its own army and defeated the Nawabs, who ruled
most of India, 1757 CE
 Practice Task – 1 - ANSWER
NB Work
The East India Company was not just an economic enterprise. It was a political one, too. Through the
actions of the East India Company, Britain was able to establish a political empire in India.

By 1720 CE, 5% of British imports came from India, through the East India Company 3

The East India Company set up many factories all over India and gained a lot of 2
economic strength.

The East India Company became the ruler of all of India 5

The Queen of England gave the East India Company exclusive trading rights in India. 1

The East India Company used its wealth to develop its own army and defeated the 4
Nawabs, who ruled most of India, 1757 CE
 Practice Task - 2

COMPARE AND CONTRAST

 It still exists
today.
EAST INDIA COMPANY CONTRAST HUDSON’S BAY COMPANY
 It was formed
in Canada.
 It was set up
by Queen
Elizabeth I.
 It traded cotton
and silk.
 It was the first
‘joint-stock’
company.
 British companies

NB
5 Mins
 Practice Task - 2
COMPARE AND CONTRAST 5 Mins

EAST INDIA COMPANY CONTRAST HUDSON’S BAY COMPANY

 It was set up • British companies  It still exists

by Queen today.
Elizabeth I.  It was formed
 It traded cotton in Canada
and silk.
 It was the first
‘joint-stock’
company.
Think and answer
MAP WORK

NB Work

Mark the following places on the

map where the East india company
established trade in India.

1. BOMBAY
2. KOLKATTA
3. CHENNAI
4. ANDRA PRADESH
5. SURAT(GUJARAT)
 MAP WORK

NB Work

Mark the following places on the

map where the East india company
established trade in India.
2
5 1. BOMBAY
2. KOLKATTA
1 3. CHENNAI
4. ANDRA PRADESH
5. SURAT(GUJARAT)
4
3
 Assessment NB Work

1. The East India Company began in------------

2. in the 15th and 16th centuries---------- was One of the most successful countries in
overseas trading.
3. A group of merchants asked --------------for money to help them sail to the East
Indies, near present-day Central America.
4. -------was a powerful document.
5. ------------ was the first European company to sell shares to investors.
6. --------------- was formed in 1670 CE .
7. The Hudson’s Bay Company set up small trading posts all around ----------- and
-----------in central Canada.
( Hudson’s bay and James bay , 1599 CE, Queen Elizabeth I , Charter,Hudson’s
bay,The East India Company,England)
 Assessment NB Work

1. The East India Company began in------- 1599 CE -----

2. in the 15th and 16th centuries-- England -------- was One of the most successful
countries in overseas trading.
3. A group of merchants asked --- Queen Elizabeth I ----for money to help them sail to
the East Indies, near present-day Central America.
4. - Charter ------was a powerful document.
5. -- The East India Company -----was the first European company to sell shares to
investors.
6. -- Hudson’s bay---- was formed in 1670 CE .
7. The Hudson’s Bay Company set up small trading posts all around - Hudson’s bay -
and -- James bay ---in central Canada.
THANK YOU