In return, the encomendero was responsible for the well-being of the enslaved people and was to see to it that they were converted and educated about Christianity. The Indigenous people could also be made to work for a certain amount of time, say on a sugarcane plantation or in a mine. Gold and silver began to connect European nations through trade, and the. The Indigenous people were supposed to provide tribute, in the form of gold or silver, crops, and foodstuffs, animals such as pigs or llamas or anything else the land produced. By 1600, Spain had reaped substantial monetary benefits from New World resources. The land included any Indigenous cities, towns, communities, or families that lived there. Monopoly port system Spain ensured that only legally authorised ports could conduct trade with the settlers in the American empire. These resources could instead be used for productive. Only two galleons were used: One sailed from Acapulco to Manila with some 500,000 pesos worth of goods, spending 120 days at sea the other sailed from Manila to Acapulco with. The Galleon Trade was a government monopoly. Another type of inefficiency occurs if the monopoly incurs costs to maintain its monopoly position. Thus, the ManilaAcapulco Trade, better known as the 'Galleon Trade' was born. There are some lost gains from trade, from buyers whose willingness to pay is above marginal cost, but below the monopoly price. Spanish conquistadors, settlers, priests, or colonial officials were given a repartimiento, or grant of land. monopoly always chooses a price that is above marginal cost. In the Americas, the first encomiendas were handed out by Christopher Columbus in the Caribbean.
#System was meant to maintain spain’s monopoly on trade free
The word encomienda comes from the Spanish word encomendar, meaning "to entrust." The encomienda system had been used in feudal Spain during the reconquest and had survived in some form ever since. The monopoly privileges of the company also meant that company traders ostensibly operated within the confines of the law, unable to engage in the more profitable free trade of Jamaican interlopers.