Question

Lord Cornwallis improved trade and commerce by ______.
A) Inviting traders from other countries to trade with Indian traders
B) Attacking the trade centres
C) Reviving the old practice of making direct contact with merchants
D) Charging heavy taxes on foreign traders

Answer 1

Hint: Charles Cornwallis is best known in the United States and the United Kingdom as one of the leading British generals during the American War of Independence. He aided in the passage of the Cornwallis Code and the Permanent Settlement in India.

Complete answer:
A basic economic concept is the purchase and selling of goods and services with compensation paid by the buyer to the seller or the exchange of goods and services between parties. Trade may take place between producers and consumers within an economy. Commerce denotes to the trade of goods and services between parties, as well as the activities that accompany that exchange, such as insurance, shipping, warehousing, and advertisement.

Cornwallis took a number of measures to promote trade and commerce. The company had procured products through European and Indian contractors since the establishment of the Board of Trade in Calcutta. These contractors also provided products that were both expensive and of poor quality. Cornwallis abandoned contract procurement in favour of procuring materials by Commercial Residents and Agents.

These Commercial Residents negotiated goods rates with suppliers and gave them advances. The Board of Trade was reduced from eleven to five members by Cornwallis, who brought it under the control of the Calcutta Council. He also informed the merchants that they would not be marginalized. That is, Cornwallis revived the old practice of making direct contact with merchants.

Thus the correct answer is option ‘C’.

Note: Commerce and trade are two different terms used in the business world. Commerce is a broad concept, and trade is a part of it. Trade is only the exchange of goods and services, while commerce encompasses a wide range of activities.