The East India Company of England was established to support the enormous financial needs of English Absolute monarchy. Queen Elizabeth granted the monopoly of trades between East India and Far East to the company, thereby expanding its activities to the point of establishments of the New East India Company in 1698 and Allied East India Company in 1708. It remained as a ruling institution of England in India for two and half centuries until it lost its actual powers by the law of Charter in 1833 and law of improvement on India rule in 1858.
This study mainly concerns around the first period and tried to focus on the Mercantilism which became a economic backbone of English Absolute Monarchy.
The East India Company was a big stock company and played important roles in the establishment of English Colonial-Empire system. 17th century was a watershed to the Company. In this period English international trade system developed enormously in its forms and trends. The company played actual and important roles in its development. Trade activities of the East India company with the Asian countries had an important position in the trades of England and played an important roles in economic policies of the absolute monarchy. Here, this study tried to find problems arose from trade settlement of the company and characteristics of the commercial activities of the East India Company.
As a conclusion, the existence of the East India Comapany, as the biggest stock company involved in international trades of England, did a great role in establishing Colonial and Empire system. The importance of East India Company in 17th century could be found in the fact that it was the very changing factor of English international trade system thereafter than any other commercial organizations. The 17th century was a watershed for English trade system and during this period there happened trade patterns and trends. The East India Company, standing on the sides of the monarchy monopolies and commercial capitals, actually played an very important role of developing of trade system of England.