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Dutch East India Company (VOC)

Definition

The Dutch East India Company, also known as VOC, was a powerful company established by the Netherlands in 1602 to carry out colonial activities in Asia. It was the first multinational corporation and operated on a global scale.

Analogy

Think of the Dutch East India Company like Amazon today. Just as Amazon dominates e-commerce and has its hands in various industries around the world, VOC dominated trade routes and had significant influence over territories during its time.

Related terms

Mercantilism: An economic theory that advocates for a positive balance of trade to increase national wealth, which is what VOC aimed to achieve through its monopoly over Asian trade.

Monopoly: Exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices. This is what VOC held over spice trade from Asia.

Colonialism: The policy or practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting it economically. This describes how VOC operated in Asia.