Regardless of what nationality you represent and how ‘independence minded’ you are, the bonds that bind you to your home country are strong and enduring. Your home country supplies you with people to populate the New World, ships to get them there, goods to trade with the aboriginals as well as muskets, tools, and other provisions that allow your colonies to exist in the early years. However, this relationship is not without price.
The King wants to profit from your endeavors. He will charge exorbitant prices for seemingly indispensable skills and military equipment. He will tax your colonies in order to gain revenue for the Crown, and he’ll get you into unwanted wars with your rivals.
EUROPEAN ECONOMY
The prices of goods and commodities in Europe fluctuate throughout the game. The forces that drive the economy are many and varied. Each nation’s economy responds to the trade it is receiving from its colonies, but it also responds to the economies of other nations. The primary factor is the amount of trade in each commodity. In other words, the more of a particular item sold in Europe, the lower the price drops. If there is little trading activity in a particular good or commodity, then the price rises. The economy is strictly supply driven.
To some extent, the prices in your home country are affected by trading activity in other ports of Europe. Therefore, if you can corner the market on an item that other powers are not trading, you can get rich fast. But since you cannot count on chance, it is to your advantage to remain flexible in your production capability, so you can switch from one item to another as easily as possible.