markitect-main/examples/infospace-with-history/output/entities/annual-surplus-of-gold-in-portugal.md

Annual Surplus of Gold in Portugal

Definition

The excess gold produced in Portuguese Brazil that exceeds domestic demand for coin and plate, creating a situation where surplus gold must be exported to find more advantageous markets. This surplus forms the economic basis for the England-Portugal commercial relationship.

Source Chapter

Book IV, Chapter 6

Context

Smith uses Portugal's gold surplus as a case study to demonstrate how natural resource endowments shape international trade patterns. The surplus gold from Brazil creates a situation where Portugal must export gold regardless of trade restrictions, making the England-Portugal treaty's preferential terms less significant than mercantilist theory suggests.

Economic Domain

Exchange

---