VOC 16th century

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The Dutch VOC.

The Dutch East Indian Company (in dutch the Verenigde Oost-indische Compagnie, VOC) was a company established in 1602. The VOC is often called to have been the first multinational corporation in the world. Statistically, the VOC exceeded al of its rivals on the East Asian spice trade. IN the 17th century the VOC sent almost a million Europeans to work in the Asian trade business. The British fleet was the closest competitor of the VOC, but the VOC was almost double as the British fleet. The VOC enjoyed huge and huge profits from the Asian trade market because they had the monopoly of the spices through most of the 17th century. During the 16th century the spice trade was dominated by the Portuguese. At the same time the Portuguese trade system was unable to increase supplies, in particular pepper. It caused the pepper price to rise up.

However the fortunes of the VOC started to decrease. Five problems, not of all equality, were the cause of the decreasing VOC fortunes. 1. The economical environment of the Asiatic politic erode steady, the VOC could not do very much about that. The volume of the VOC's trade, and its profit became smaller. 2. The way how the company was organized in Asia that offered advantages but eventually developed in disadvantages in the 18th century. This disadvantage was mainly felt in the tea trade, where other companies shipped directly from China to Europe. 3. Corruption of the VOC's employees increased, it increased through a problem for all East-Indian Companies at that time. The employees said that the VOC's wasn't a good employer. 4. High mortality and morbidity rates among the employees. This increased many of the VOC's ranks and enervated many of the survivors. 5. The dividend policy, a dividend distribution by the company had exceeded the surplus it garnered in Europe. Up to 1730 the directors shipped resources to Asia to build up the trading capital there.
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