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Japan’s trading houses resembled conglomerates in that they dealt with various goods and materials that helped boost Japan’s economy to global heights.
Establishing trading companies during the 16th and 17th centuries was an institutional innovation that allowed European nations to conduct commerce with distant shores while exercising functions commonly administered by national states. Several prominent trading companies were formed during this era, including the East India Company (EIC) and the Dutch East India Company, or VOC. These companies gradually came to dominate Asian trade due to their prime location within Asia – providing access to key ports and the Indian Ocean. Batavia initially provided them with market intelligence; however, during the 18th century, this proved less advantageous as its location forced goods through Batavia before heading to Europe.