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Each nation on the globe, both player and NPC, has a trade value. This value is the total amount of trade that this nation can generate and it is based on GNP. The pie is a fixed size in any turn. A nation's trade pie can grow over time as the nation progresses or shrinks due to war or recession.

A nation can divide this trade pie up with other nations by giving percentages of their pie. A nation that receives a piece of the trade pie will receive additional income that they otherwise would not have received. Each nation can decide how to divide up its trade pie however it sees fit.

For example, I will give you 10% of my trade pie in exchange for 20% of yours.

My Pie: $100
Your Pie: $50
Your new income per turn = ($100 x 10%) = $10
My new income per turn = ($50 x 20%) = $10

These agreements do not have to be equal. In fact, in many cases they may not be. For instance, you might grant an NPC a percentage that results in them getting more dollars from you than you get from them to make them happy with you. Either way, both nations will get money that they otherwise would not have gotten.

These amounts DO NOT come out of your income. This is a net PLUS for each of the two nations in the example. If the agreement had not been made, then neither country would have gotten any of the money at all.

Political Effects of Trade

Trade has political effects. Nations that trade with one another, and make money off of one another, have better relations. It is entirely possible for you to give 100% of your trade pie to another nation. That might be good money-wise, but you lose the political benefits of trade with other countries. In these cases nations, whether NPC or PC, have one less reason to care about what your nation does or says because all of your trade goes to one nation.

Some players may develop a strategy where they divide up their trade pie amongst many nations in exchange for less. They will still make extra income, but not as much as they might have if they had maximized their trade agreements. In this case they will probably have trading partners who do not want to endanger the favorable trade deal and will be more favorable toward the player's nation.

Other players may develop a strategy where they attempt to maximize their trade agreements, making sure that they receive equal or greater amounts in return for what they dispense. In this case they will likely make more money, but will not gain the political benefits that come with being the dominant trade partner.

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