Compagnie van Verre

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The Compagnie van Verre (long-distance company) was a forerunner of the Dutch East India Company.

The Dutch East India Company was an early megacorporation founded by a government-directed amalgamation of several rival Dutch trading companies (voorcompagnieën) in the early 17th century. It was established on March 20, 1602 as a chartered company to trade with India and Indianised Southeast Asian countries when the Dutch government granted it a 21-year monopoly on the Dutch spice trade. It has been often labelled a trading company or sometimes a shipping company. However, VOC was in fact a proto-conglomerate company, diversifying into multiple commercial and industrial activities such as international trade, shipbuilding, and both production and trade of East Indian spices, Formosan sugarcane, and South African wine. The Company was a transcontinental employer and an early pioneer of outward foreign direct investment. The Company's investment projects helped raise the commercial and industrial potential of many underdeveloped or undeveloped regions of the world in the early modern period. In the early 1600s, by widely issuing bonds and shares of stock to the general public, VOC became the world's first formally-listed public company. In other words, it was the first corporation to be listed on an official stock exchange. It was influential in the rise of corporate-led globalisation in the early modern period.

History

It was set up in 1594 by nine citizens of Amsterdam, to break Portugal's monopoly on the pepper trade. To do this, it sent an expedition of three heavily armed ships and a pinnace under the leadership of Cornelis de Houtman, with orders to break into the trade. (Cornelis' brother Frederik also worked for the Company.) On 2 April 1595 the ships set off from Texel, with 248 officers and men on board. The expedition (which became known as the First Schipvaart) followed the routes described by Jan Huygen van Linschoten after he had made the journey in the pay of the Portuguese. On 6 June 1596 the ships arrived at Bantam, the most important pepper port on Java. During the return trip, on 11 January 1597, the Amsterdam was badly damaged and had to be left behind at the island of Bawean. On 14 August 1597 the expedition arrived back in Amsterdam with only 87 survivors. The voyage was not a success commercially, but it proved that not only the Portuguese had the potential to trade in pepper.

Amsterdam Capital of the Netherlands

Amsterdam is the capital city and most populous municipality of the Netherlands. Its status as the capital is mandated by the Constitution of the Netherlands, although it is not the seat of the government, which is The Hague. Amsterdam has a population of 854,047 within the city proper, 1,357,675 in the urban area and 2,410,960 in the metropolitan area. The city is located in the province of North Holland in the west of the country but is not its capital, which is Haarlem. The Amsterdam metropolitan area comprises much of the northern part of the Randstad, one of the larger conurbations in Europe, which has a population of approximately 8.1 million.

Portugal Republic in Southwestern Europe

Portugal, officially the Portuguese Republic, is a country located mostly on the Iberian Peninsula in southwestern Europe. It is the westernmost sovereign state of mainland Europe. It is bordered to the west and south by the Atlantic Ocean and to the north and east by Spain. Its territory also includes the Atlantic archipelagos of the Azores and Madeira, both autonomous regions with their own regional governments.

Monopoly market structure with a single firm dominating the market

A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity. This contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly which consists of a few sellers dominating a market. Monopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit. The verb monopolise or monopolize refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices. Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry.

In 1598 the Compagnie van Verre merged with the Nieuwe Compagnie and in 1597 with the Oude Compagnie . The resulting company then merged with the Nieuwe Brabantsche Compagnie in 1601 to form the Verenigde Amsterdamse Compagnie , which in turn merged with many other companies (including the Verenigde Zeeuwse Compagnie ) in 1602 into the Dutch East India Company (VOC), retaining a room in the VOC's chambers in Amsterdam.

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