Free Trade increases volume of goods available for consumption
As more territories join the free trade network overall price of goods will decrease due to competitive advantages and economies of scale.
Colonies where country do not assume tight control tends to economically fair better – British West Indies (modern day US)
Revenue generated by far flung colonies will often not be enough to cover for expenses incurred for their military protection
Slaves are more productive when well taken care of – French West Indies versus British West Indies
Wars are costly and force countries to take on debt they will unlikely repay
Capital circulation is faster when trading with near by neighbors versus far flung colonies
Rapidly growing far flung colonies consume more capital than they make available
Types of colonization
Tightly controlled
central government assumes tight control to extract resources for parent country – French East Indies
Loosely coupled
citizens outgrew their space in their mother country and are surrounded by hostile neighbors. New colony assumes an independent administration and foreign policies – Greek colonies
Types of monopolies
Of produce by colonies
the common form utilized by companies
easier to enforce
bad for colonies
Of trade routes
utilized by the Portuguese for traveling sailing along the East Indies after successfully navigating the cape of good hope
not feasible to enforce except on countries that don’t have a navigation industry
organization aimed at restricting supply
trade guilds
universities
trading companies
Types
Government exclusive companies
Joint stock companies
Example
British East India company
Dutch East India company
Types of military
Standing Army
professional and kept even in times of peace
Official types – Rome
By environment – the Mongolian nomads whose hardy lifestyles were beneficial
Militia
drafted in times of necessity
as war fare became more complex and long drawn campaigns instead of skirmish, militia eventually harden to achieve skill levels of standing army
The Greek army transited from a militia to become a standing army during the Peloponnesian War