Final answer:
The British East India Company was formed to establish a monopoly over trade in the East Indies, and it gradually became a governing force in India, exploiting resources and governing territories until the British Crown took over in 1857.
Step-by-step explanation:
The Dutch East India Company and British Imperialism
The formation of the British East India Company (EIC) was a pivotal moment in history, marking the beginning of British dominance in international trade and the establishment of a monopoly on the Indian subcontinent. Modeled after the monopolistic practices of other European powers, the EIC was granted exclusive rights over British trade in the East Indies. Recognizing the value of colonies for access to raw materials and new markets, Britain, like the Netherlands and France, became aggressive in establishing colonial empires.
By the mid-17th century, the EIC had evolved from a commercial entity into a quasi-governmental institution, wielding not just economic power but also military force. The British government continued to support the EIC by passing legislation such as the Tea Act of 1773, further reinforcing the company's monopoly and igniting colonial discontent that eventually contributed to the American Revolution.
Throughout its existence, the EIC was heavily involved in economic exploitation, utilizing cheap labor and oppressive practices to maximize profits from commodities like cotton, spices, and particularly opium, which was sold to China. The company also established an administrative structure to more effectively govern the Indian territories, using local intermediaries and introducing the English language as a means of control and communication. It wasn't until 1857, after a series of conflicts and local resistance, that the British Crown took direct control over India, marking the end of the EIC's rule.