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Question

How did Portugal and Spain govern their colonies to promote economic gain and exert their authority?

Solution

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Economic profit was based on the exploitation of precious metals and agricultural production. Later, agriculture became a better and more permanent source of income. Encomienda system is a system introduced by colonialists to collect taxes and provide sufficient labor force. The landowners had to pay the imposed tax. In addition, the colonialists used an arrangement - a bribe consisting of three authorities, the provision of labor, the system of owners, and the dependence of peasants.. This later turned out to be very bad for third class people.

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