Tuesday, December 21, 2010
Dutch East India Company
It eas the first multinational company in the worldand the first company to issue stock.It was also arguably world's first megacorporation, possissing quasigovernmental poers, including the ability to wage war, imprison and execute convicts.
Between 1602 and 1796 the VOC eclipsed all its rivals in the Asia trade and sent almost a million Europeans to work in the Asia trade on 4,785 ships and metted for their efforts more than 2.5 million tons of Asian goods. By contrast the rest of Europe combined sent only 882,412 people from 1500 to 1795, and the fleet of the English (later British)East India Company, the VOC's nearest competitor, was a distant second to its total traffic with 2,690 ships and a mere one-fifth the tonnage of goods carried by the VOC.The VOC enjoyed huge profits from its spice monopoly through most of the 17th century.
The Dutch East India Company remained a trading concern for about two centuries paying 18% annual dividend for 200 years.
During the 16th century, the spice trade was dominated by the Portuguese. But due to its insufficient trade system it was unable to supply the demand for spice specially pepper.During 16th and 17th century there were heavy competition between the Europeans for trade of spice in Asia. By 1669, the VOC was the richest private company the world had ever seen, with over 150 merchant ships, 40 warships, 50,000 employees , a private army of 10,000 personnels,and a dividend payment of 40% of the original investment.