Much larger “return ships” of 500 to 1,000 tons were used for the long haul, including a stopover in Cape Town. Other commodities, such as cinnamon and nutmeg were mainly exported back to Europe. Some were traded only over short distances, while others traveled greater distances, such as between Indonesia, China, and Japan. Traded commodities included textiles, pepper, and yarn from India, cinnamon, cardamom, and gems from Sri Lanka. The goods were then collected in large warehouses in protected strongholds Batavia (Indonesia) and Galle (Sri Lanka) were the most significant. A regional trade network was serviced by smaller ships that called along coastal trading routes various ports throughout the region. Later, a trade network composed of two layers was established, reminiscent of a hub-and-spoke structure. When VOC first came to Asia, ships made the long-distance trip back and forth from Europe. However, mainly due to corruption and mismanagement, the company faced bankruptcy in 1799, with its holdings transferred to the Dutch Crown. By 1750, VOC employed around 25,000 people and did business in 10 Asian countries. Most of it came from the “Spice Islands” in the Dutch East Indies. The company essentially achieved a monopoly on nutmeg (meat preserver) and cinnamon trade for about a century and raked substantial profits. It resulted in a growing quantity and variety of cargo being traded. Later, plantations and the introduction of new forms of cultivation, such as coffee in West Java (1723), were established. Cape Town (South Africa) was also founded in 1652 as a crucial stage for the long Europe-Asia voyage. By the mid seventeen century, VOC had replaced most local trading networks with their own with a series of fortified trading posts acting as hubs. The major trading hub of Malacca was taken from the Portuguese in 1641. In 1610, VOC gained a foothold in Batavia (Indonesia / Dutch East Indies) and conquered most of the island of Ceylon (Sri Lanka) by 1640, establishing the stronghold of Galle. As time progressed, they became increasingly involved in controlling and developing their respective territories. Their initial goal was to develop trade links for prized commodities such as pepper. They were almost states by themselves with their own ships (military and merchant) and military forces. As joint-stock companies, they were private mercantilist tools with a guaranteed trade monopoly in exchange for rights paid to their respective governments. From the 17th to the 18th-century, trading companies such as VOC (and its British counterpart, the East India Trading Company), acted on behalf of European governments. The Dutch East India Company (VOC Verenigde Oost-indische Compagnie), founded in 1602, is often considered the first truly multinational corporation.
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