in 1600, a group of businessmen in england founded what later became the british east india company to trade…

in 1600, a group of businessmen in england founded what later became the british east india company to trade with people in asia. over the next 250 years, it became one of the most powerful companies in the world. businessmen such as the ones who founded the british east india company start business for many reasons. but they almost always want to make a profit, or make money after all the costs of the business. imagine you are one of the people who decided to found the british east india company. sort the results of this decision below into costs and benefits. because you have the support of the queen, no other english people are allowed to compete with you for trade. you will be able to charge what you want for goods in england. the indian ocean is dangerous. pirates might raid your ships and steal your valuable cargo. you can sell goods made in asia to other people. the demand for goods from asia is high, especially in england. you will sell goods to people all over asia. there are many people in asia, and you can make a lot of money by selling goods to them. in order to trade, you have to buy ships and hire sailors. doing so will cost a lot of money. some of the people you are founding the british east india company with may be corrupt. its possible that they will steal the money that the company makes.

in 1600, a group of businessmen in england founded what later became the british east india company to trade with people in asia. over the next 250 years, it became one of the most powerful companies in the world. businessmen such as the ones who founded the british east india company start business for many reasons. but they almost always want to make a profit, or make money after all the costs of the business. imagine you are one of the people who decided to found the british east india company. sort the results of this decision below into costs and benefits. because you have the support of the queen, no other english people are allowed to compete with you for trade. you will be able to charge what you want for goods in england. the indian ocean is dangerous. pirates might raid your ships and steal your valuable cargo. you can sell goods made in asia to other people. the demand for goods from asia is high, especially in england. you will sell goods to people all over asia. there are many people in asia, and you can make a lot of money by selling goods to them. in order to trade, you have to buy ships and hire sailors. doing so will cost a lot of money. some of the people you are founding the british east india company with may be corrupt. its possible that they will steal the money that the company makes.

Answer

Brief Explanations:

To solve this, we define costs as negative outcomes (expenses, risks, losses) and benefits as positive outcomes (profits, advantages, opportunities) of founding the company.

Costs:

  • "The Indian Ocean is dangerous. Pirates might raid your ships and steal your valuable cargo." - Risk of loss due to piracy.
  • "In order to trade, you have to buy ships and hire sailors. Doing so will cost a lot of money." - Financial expense for assets and labor.
  • "Some of the people you are founding the British East India Company with may be corrupt. It’s possible that they will steal the money that the company makes." - Risk of financial loss due to corruption.

Benefits:

  • "Because you have the support of the queen, no other English people are allowed to compete with you for trade. You will be able to charge what you want for goods in England." - Monopoly power and pricing control.
  • "You can sell goods made in Asia to other people. The demand for goods from Asia is high, especially in England." - High market demand for Asian goods.
  • "You will sell goods to people all over Asia. There are many people in Asia, and you can make a lot of money by selling goods to them." - Large customer base in Asia for profit.

Answer:

Costs:

  • The Indian Ocean is dangerous. Pirates might raid your ships and steal your valuable cargo.
  • In order to trade, you have to buy ships and hire sailors. Doing so will cost a lot of money.
  • Some of the people you are founding the British East India Company with may be corrupt. It’s possible that they will steal the money that the company makes.

Benefits:

  • Because you have the support of the queen, no other English people are allowed to compete with you for trade. You will be able to charge what you want for goods in England.
  • You can sell goods made in Asia to other people. The demand for goods from Asia is high, especially in England.
  • You will sell goods to people all over Asia. There are many people in Asia, and you can make a lot of money by selling goods to them.