An Overview of the trades and incomes of Portugal in 1872:
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At 31K tariffs, and 13.5k dividends, these 2 roughly match the incomes derived from income tax, poll tax and consumption tax combined. Norma tax setting, consumption tax on services and opium.
Now its fairly obvious that i went and conquered Sindh by now to build a big opium plantation there and sell it at high tariff to China. because of the size that the trade was approaching, i came to the point where it was opportune to switch to protectionism. We levy 30% export tariffs usually on our exports, or 30% import tariffs on imports, whatever tends to be the biggest flow between incoming and outgoing. A part of our trade and tariff income is also derived from trough trade, where we buy products in country A and sell the same products in country B with ought our own market having so much to do with it., as we can see in the next picture:
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Were selling Opium, and also buying a paltry amount from Kalat, there is a total of something like 2K Opium supply in my little empire and 1.8K consumption, so very significant an import it is not. Better examples can be seen with with dyes and coffee. We buy 135 coffee from Merina Kingdom and sell 162 coffee to Austria at a 30% tariff and there is a big productivity gap between those trades who are both at positive productivity, aka we can take a fair margin in between that. The same is true for an extent for dyes, were selling about 325 dyes combined and buying 175 dyes from China and Merina kingdom combined, again at a 30% export tariff. I really havnt been upping the supply of my dyes too much myself in part because its a market that some day will dry up, but for the moment thats a nice trade making some extra "out of nowhere" for me. Wood and cloth arnt big tickets anymore, now iron has become a larger ticket for tariffs as we switched to iron production some time back.
tariff breakdown:
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Still making some money on the import on extra construction materials, Portugal has iron but its southern mining province has too few manpower and infrastructure to expect one can exploit its fullest potential by now, some mining can be done in the colonies but that also takes effort to get online due to lack of professions there and need for education decrees. At this point though we have switched far more to exports than imports, and the big ticket item afcourse is about 15.5K in opium tariffs, though tariffs on dyes and coffee dont look too bad either.
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on the matter of ranking and GDP i dont think i'm doing too bad either. One has to take in mind it's Portugal, and were only 27 years into the game. i'm ahead of Spain in GdP at this point, and close to the GDP of Belgium, which isnt too bad in my book at this point. Portugal doesn't have the most easiest of starts, given its negative budget at start as a result of all its port costs. i'm mostly focusing now to bring up my universities to about 30 of them so to be guaranteed of having great tech by the end of the game with literacy leaving a fair enough innovation cap for the moment. However, so as to adress
@Don_Quigleone his concerns here i now would like to make a few points about the investment pool, the reinvestment rate, then compare that to other country's and make an somewhat quantifiable assessment of the efficiency of investment pool use versus the costs of the materials and the general validity of a strategy where one uses the income of tariffs to nationalize industry build by the Ai so to "juice the investment rate".
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Now as one can see here i have a huge amount of money siting dormant in the investment pool, and i have a 164K reinvestment rate. Why am i not even using it all, why am i sitting on this excess? the simple truth is that the 25 or so iron construction sectors i have to run here already take up 125K of my active laborpool, and i'm already fully depeasanted as this somewhat expanded Portugal at this point. Tech is simply running behind what this sort of reinvestment rate would be capable of even if i research 1 tech per year at max innovation, because this reinvestment rate is PROPERLY PUMPED. One has to do comparisons with other country's to even be able to put this in proportion, so lets do that:
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Here is Qing China. at its 106 million GDP it has about 5x the GDP of Portugal in 1872. It's reinvestment rate is a paltry 35.5k, thats about a fifth compared to my Portugal which has but a fifth of China's GDP, meaning China has 25 TIMES less reinvestment per million GDP.
The number 2 on this aspect in the game is the UK, see screenshot below
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Now thats a bit better than China, but its still lower than the 165K reinvestment rate in Portugal, for a country that is more advanced and has about 3.5x the GDP of Portugal. However per matter of quantification one can note here that the Uk's investment pool is currently spending 133k for 238 points of construction while my Portugese are spending 111k on 121 points of construction so there is a fair gap in the efficiency by which the Uk constructs in comparison to i. We pay something like £915£ per 1 construction point and the Uk is spending 560£ per construction point, a significant reduction owning to the simple fact that the Uk is reasonably just more advanced than Portugal even at this point, the Uk is on steel frame construction and i am 5 weeks from unlocking steel frame construction. Yet it simply also has to be noted that the Uk here is generating 2030£ reinvestment per million of GDP, whereas my Portugal is generating a whooping 7600£ in reinvestment for the Ai to spend per 1 million GDP. The sheer efficiency of reinvestment generation in my country greatly outstrips the loss of some spending efficiency within the construction sector, and is a product of me being able to nationalize key industry in part trough income derived from tariffs on expensive construction materials payed by a juiced up reinvestment rate. hence its a sort of cycle, in which you capitalize on the investment pool in tariffs to nationalize and buff the reinvestment rate so to speed up the pace by which he AI can build your economy by itself, hence also why i'm already easily de-peasented as portugal by 1872 too. i could easily fund double the construction i have currently with my reinvestment rate and the sheer reserves my investment pool has but again i just dont have the manpower or necessarily much things of importance to build at this point even when doing so would actually juice up the income i derive from iron imports further, i mean i could just opt to tax the crazy amount of money that is just lying around there, its simply logical that due to this sheer investment rate i'm pacing fast to a point where even if i could host much more construction i need to find or take new places to build in first.
Now, breaking down Portugals reinvestment rate will show some details of where all this juice is comming from
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Consider, that i as the state of portugal own maybe 10% of all buildings in my country, it's the profitability of what i own that matters. One can see that in proportional terms, for the fact that the manor houses and the financial districts own the other 90% of the economy they dont get close as to contribution to the investment pool as items like my "part ownership" in Opium plantations and logging camps does. And even in that aspect take some notion of the contribution of company headquarters which is also significantly lower despite the fact that these company's own about half of the Opium plantations and logging camps that the state owns. These state industries can be seen in more detail below:
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the opium plantation in Sindh, of which i own half and works at 115% throughput with the help of various modifiers and this opium company supporting it. its profit is nearly 1000£ per level of plantation build, which is a huge ROI and is very much part of why the investment pool gets so jacked. this is as a result of the low labor costs associated with colonial exploitation aswell as its throughput bonus, in combination with boni given by the province of Sindh. Though the profit margins on the forestry in Angola are even better:
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This forestry is at 1225£ in profit per level. Even when a country is in debt, if it doesnt suffer from a very high interest rate nationalizing this and thereby putting oneself further in debt would typically have a positive effect on the budget as the cost of interest would be outstripped by the dividend gained. It is somewhere around 1000£ per level of plantation or forestry, and more for factories since they have triple the cost. But its this half ownership, or basicly owing 6 forrestry's here and 23 opium plantations in Sindh, that contributes something like 75% of the reinvestment rate, coupled with a few highly profitable cotton plantations and factory sweatshops utilizing cheap labor in colonies.
At this point, i feel entirely right in propagating the merrit of this method, even to import construction goods at high cost and raising tariffs on it. What matters having say -40% investment pool utilization efficiency, if the incomes generated from tariffs and later dividends can be strategically used to buff the reinvestment rate by orders of 350% of what of what the reinvestment rate per million of GDP would be in a country that is technologically more advanced? It's nice tariffs income adding to the budget, it's nice dividends too adding to the budget directly. it's a perfectly viable strategy to juice the Ai's abbilety to churn out buildings, and rather than that your so much focussed early on to hard building resource industry to supply your construction sectors you can just pump out construction sectors trade for the materials collect more income and use it to juice the AI's abbilety to pay for more construction materials and tariffs by buying highly profitable buildings that also contribute a fair amount to dividend income.
And i think this is all very "vintage Portugal", i'm trading and getting rich, building colonies for the purpose of trade. Now one can say opium is an obvious one but what of it? Heck i'm trasnporting it from Portugal to China half across the world and that takes a fair amount of transports but if you break down that cost its but about 30% of the revenue made on opium tariffs, other trades are often cheaper when they are closer or run mostly overlland for their size. I have taken a little treaty port on Madagascar and you can see me part exploiting the monopolistic access that gives me to their market to buy goods from them and sell goods to them in a fashion where i'm trough trading their goods to other nations, a simple proof too imho of the things you can do so as to generate tariff income trough the ownership of a tiny treaty port on a isolationist country.
And i think i have delivered proof against
@Don_Quigleone his objections, there is a very strong argument to be made that importing expensive construction materials at a high tariff was a very sound choice with the potential of reinvestment buffing in mind.
So i think i'm perfectly right to propagate the merrrit of these sort of trade related strategy's, adn it shows that a country like portugal can have a fun immersive game in being a trade oriented nation too. As another matter of note, i have no railways in my provinces despite they demadning a fair amount of infrastructure, its all covered by ports. Most players would be paying to subsidize their railways once heavy labor competition comes around, i pay for those ports by default but i'm getting triple the return on the convoys trough the tariffs so my infrastructure providers are generating money for me.
Give it another decade, and i will be selling a 1000 units in regular clothing to China too, i know that huge market is comming around soon enough, its part of market trends in the game.