- This article deals with the trade network and trade income. For information about trade goods and their production and value, see trade goods.
Trade and production of trade goods are two of the three main sources of income for a country, the third being taxes. Every province produces trade goods, which give production income to their owner directly. The trade value of the goods then enters a system of trade nodes, where it is steered and eventually collected by merchants as trade income.
- 1 Summary
- 2 Trade nodes
- 3 Trade value
- 4 Trade power
- 5 Trade power sources
- 6 Trade power modifiers
- 7 Merchants
- 8 Trade income
- 9 Privateering
- 10 See also
- 11 References
The trade system in game can be summarized as follows:
- Trade nodes across the world are connected to form a global network of trade. Each node hosts the trade activity of a group of geographically associated provinces. Money in this global trade network can flow between trade nodes in unidirectional trade routes as well as terminate at end nodes. These connections between trade nodes are fixed and cannot be altered during the course of play.
- Trade value represents the monthly sum of locally produced and incoming trade goods in a trade node. Trade value is generated from the quantity and price of produced trade goods in each province. All provinces pool their trade value into the total trade value of their associated trade node. The trade tab provides an aggregate trade value in a node while the trade map mode displays a tool tip listing locally produced separately from incoming trade good values.
- Trade power is a raw number representing a country's control over trade in a node. The raw trade power of a country over the total trade power of all countries present in the node determines what will happen to the trade value in each node. Power is used either to retain trade value within the node (if the nation is collecting with a merchant or at its home node), or to transfer it forward in the trade network (if the nation is steering from there with a merchant, or it's not its home node and it has no merchant). Trade power is generated by provinces, light ships, and merchants. Certain ideas, events and modifiers can also affect a country's trade power in a node.
- Merchants can be sent to a trade node to collect a portion of the node's trade value proportional to the nation's share of trade power in the node, or steer the node's trade value in a particular direction.
- See also: Trade nodes
The provinces in the world are divided into regions that are each associated with a trade node.
Every trade node has a predefined set of upstream and downstream nodes, which trade value can flow from and to, respectively. All trade value entering a trade node from upstream will either be collected there or transferred downstream to another trade node. Collecting in a trade node converts a country's share of trade value there directly into ducats.
Trade value come from two sources, local trade value and incoming trade value. Local trade value are produced by the underlying provinces. Incoming are values that come from upstream nodes.
Nations which have trade power in a node have influence over the node's trade value proportional to their share of total trade power.
This influence is exercised in one of two ways:
- Collect trade value: national share of trade value is turned into income.
- This happens automatically if the node is the home node, or if a merchant is dispatched to do so. Collecting trade in a non-home node will halve the trade power of the nation in that node.
- Transport forward trade value: national share of trade value is sent forward to one of the downstream nodes.
- If a nation is not collecting in a node, then its share of trade value will be sent away to one of the directly connected node. The destination node is chosen automatically, but it is configurable if a merchant is dispatched to "transfer trade power"(misnomer).
Home node is the trade node in which a nation's main trading city resides. All nations will automatically collect their share of trade value from their home nodes, and send trade value towards it from other nodes if possible. The main trade port is typically located in a nation's capital, but it can be moved for 200 with the Wealth of Nations DLC.
All non-home nodes are classified as domestic or foreign. A node is labeled domestic if 20% of the provincial trade power is held by the nation. For these purposes a home node is considered domestic.. The distinction comes into play in two cases:
- certain ideas, traditions etc. give bonus to trade power specifically in domestic or foreign trade nodes,
- if a nation encounters overextension it suffers a -1% penalty to trade power per point of overextension in foreign nodes but not in domestic nodes.
If a nation is not collecting in a node, nor any node downstream, even through multiple hops, then it is not eligible to influence trade value in this node. The nation's share of trade value is then redistributed among nations that are eligible. Thus trade power of the nation in this node is effectively wasted. The nation can still benefit from propagation effect though. Sending a merchant to such a node either to collect or transfer will make nation eligible for trade value in a normal way.
- See also: Trade goods
Trade value represents ducats (money) in the trade network.
Local trade value
The local trade value of a node is the sum of the trade value of all provinces belonging to the node. On a provincial level, trade value is the amount of local goods produced multiplied by their price. In the trade map mode hovering the mouse over a trade node will open a box showing the local trade value.
Total trade value
Total trade value in a trade node is the sum of local trade value (from provinces), incoming trade value (from upstream trade nodes), minus outgoing trade value (to downstream trade nodes). Total trade value is distributed among countries with trade power in the node. Total trade value of trade nodes can be found in the ledger under Trade/Trade Nodes category in the list of trade nodes. The summary of trade value can be found in the trade node view panel as a tooltip which shows the retained trade value that is total trade value less outgoing trade value .
Multiple merchant bonus
In addition to steering outgoing trade value through a particular outgoing link, each merchant applies a boost to the trade value on that link---that is, the steered trade value increases by a percentage as it passes between the two nodes, so that the incoming trade value of the downstream node is larger than the corresponding outgoing trade value of the upstream node. This affects all trade on that link, not just the merchant's country, so multiple merchants can boost trade on the same link. The total boost is:
Having more than five merchants will not increase the boost further. The boost is modified by the country's trade steering: for example, if the first merchant's country has +20% trade steering the boost from the merchant will be increased to +6.0%. Currently the merchant order is unsorted, so the merchant with the highest trade steering will not necessarily be first.
Trade power determines the share of control over trade value of a nation in a node.
national share of trade value = (local value + incoming value) * tradepower / TotalTradepower
This value can either be collected (turned into income), or be transported downstream.
Trade power sources
A country's trade power in a trade node is determined by:
Provincial trade power
Every province contributes an amount of trade power to its controller's country in the local trade node. The exact amount and relevant calculations can be seen in province view under Trade category. The base trade power is 0.2 per province development. Certain provinces gain bonus trade power if they are designated as centers of trade (+10), important natural harbor (+10), river estuaries (+10) or sound tolls (+20). These are denoted by special icons visible on the trade map, and when selecting the province in question. Trade power of the province is subject to various modifiers both global (e.g. +2% per point of a nation's mercantilism) and local (e.g. coastal provinces get +25% trade power bonus). Trade buildings also provide trade power bonus (up to +125%).
|Available only with the Res Publica DLC enabled.|
- Merchant republics have the option of building 1 trade post (+10) per trade node in an owned province (except the home node) for -50 adm points.
Provincial trade power modifiers
- Certain ideas and policies improve provincial trade power.
Transfers from traders downstream
Any nation that has at least 10 provincial trade power points in the node enjoys the propagation of that power upstream. An amount equivalent to 20% of the nation's provincial trade power is added to the total trade power of that nation in every immediate upstream node where it is denoted as transfers from traders downstream.
Mercantilism provides a bonus to provincial trade power equal to double the listed mercantilism percentage. High mercantilism increases liberty desire in colonial subjects up to 25%.
Certain events, decisions and missions give permanent increases or decreases to mercantilism, some of these are:
- +10% English Designate Calais as The Staple Port decision
- +7% ×2 Ayutthayan Prasat T'ang's Economic Reforms and Phrabat Somdet Phra Chairachathirat events.
- +5% Chinese technology Close Foreign Trade decision
- +5% Revolution disaster event The Revolution is here
- +3% Republican in exchange for -2 republican tradition Freetraders winning debates choice.
- +2% Genoese missions
- +1% Theocratic The Merchant's Son event
- +1% Catholic nation in exchange for -50 Papal influence.
- -3% Republican in exchange for +2 republican tradition Freetraders winning debates choice.
- Main article: trade company
Provinces in trade companies get +100% provincial trade power. There are 15 regions throughout Asia and Africa which may have a trade company. . Nodes with trade companies in them count as domestic trade nodes and can be collected at by a merchant without incurring penalties for overextension.
This section may contain outdated information that is inaccurate for the current version of the game. The last version it was verified as up to date for was 1.18.
A country may increase its trade power in maritime (non-inland) trade nodes by sending its light ships on Protect Trade mission. Light ships increase trade power in the trade node in which they are protecting trade by a base ranging from 2 per ship (Barque, diplomatic technology 2) up to 5 per ship (Great frigate, diplomatic technology 26).
Note that each light ship also increases the total trade power in the node, so the relative increase per light ship is:
Thus for example, adding a single ship with a trade power of 2 to a node with a total trade power of 20 would be a relative increase of 2/(20+2) = 0.0909…, while adding a second such ship to the node would be a relative increase of 2/(22+2) = 0.0833….
Some bonuses to ship trade power are:
|+20%||Being in a Trade League|
|+5%||Per Maneuver skill of the fleet's admiral|
Light ships on protect trade missions can only be sent to trade nodes where the country already has trade power and the supply range is met. The limitation on supply range applies even when naval attrition is removed at diplomatic tech 22. If the trade range permits, a country can send a merchant to a node without any initial trade power and then follow up with light ships protecting trade (as long as these are within supply range). A good way to arrange for a favorable supply range is by gaining fleet basing rights from a nation in the vicinity of the target trade node.
Other sources of trade power
- Merchant Present: The presence of a merchant increases a nation's trade power by +2.
- Main trade port in area: A nation gets additional +5 trade power in its home node.
- Colonial nations provide their overlord with 50% of their trade power, while other nations can be persuaded (through diplomacy) or forced (through war) to transfer up to 50% of their trade power as well (trade transfer agreements no longer take a diplomatic relationship slot). As a note, personal unions and vassals do not transfer trade power to their suzerain. As such, vassals and personal unions may direct trade away from a preferred route or home trade node. However, the suzerain may demand 50% of their vassal's trade power, at a cost of liberty desire.
Trade power modifiers
Global trade power modifier
- Certain ideas and policies improve global trade power.
- Each colonial nation (of at least 10 provinces) provides +5% global trade power to its overlord.
- Prestige provides between -15% and +15% global trade power.
- Stability provides between -3% and +3% global trade power.
- Power projection provides between 0 and +20% global trade power.
- Reformed religion Fervor power Trade provides +10% global trade power with Wealth of Nations DLC active.
Domestic trade power modifier
- Home node and nodes where a nation has the highest provincial trade power are considered domestic. Both oversea provinces and trade company provinces count. Domestic trade power refers to trade power in these nodes. Domestic trade nodes do not suffer from overextension.
- Certain ideas and policies improve domestic trade power.
Foreign trade power modifier
- Trade nodes that are not domestic are considered foreign and will suffer from over-extension penalties. Trade power abroad refers to trade power in these nodes.
- Trade power abroad receives following bonuses:
- -1% equal to overextension, this modifier is uncapped (at least to 300%).
Trade steering is applied as a multiplicative bonus to trade power used for steering when determining which outgoing node trade is steered to.
- Trade steering is increased by certain ideas and policies.
Each point of naval tradition also increases trade steering efficiency by 1%.
|Available only with the Wealth of Nations DLC enabled.|
- Note: The values are displayed under country modifiers of the government interface even without Wealth of Nations DLC, but without effect in the trade nodes.
A nation steering from, towards or collecting (only in main trading port) an inland trade node receives bonus trade power. Caravan power is total development/3 and maxed at 50.
Merchant republics gain +33% bonus to Caravan power.
- Caravan power is increased by certain ideas and policies. Can exceed 50 with these bonus.
Embargoing is an option in the diplomacy screen that allows a country to leverage their trade power against another nation's, decreasing that nation's trade power in shared trade nodes. The trade screen shows icons for each nation embargoed and those embargoing your nation. Placing the mouse over each nation icon breaks down the penalties in each shared trade node.
Embargoing a country has the following effects:
- The defending country suffers a penalty to trade power in all trade nodes that both countries have power in. The base magnitude of the penalty is half of the attacker's trade power share in the trade node before the embargo. This penalty stacks multiplicatively with other modifiers.
- The defending country's opinion of the attacking country is modified by -15. The defender also gains a Trade Dispute casus belli against the attacker unless the embargo is mutual.
- The attacking country's trade efficiency suffers a -5% penalty unless the defender is a rival.
- Embargoes do not count against the Diplomatic Relation limit.
- The attacking country gains up to +10 power projection if the target is a rival, the amount depending on how severely the embargo affects the target's trade.
Embargo Efficiency can be increased by the following:
Merchants are envoys used to alter the default trade route behavior by collecting or steering trade. Merchants must be stationed at a trade node to do their work and can only travel a distance defined by a country's trade range, which increases with diplomatic technology, idea groups, and national ideas.
Note that employing merchants is not obligatory for trade system to function. Every nation will automatically collect from its home node, and send trade towards it if possible. Merchants are normally used for:
- collecting in nodes other than home node,
- trade steering, that is, controlling by which way outgoing trade value is transferred downstream,
- as a prerequisite for sending light ships to protect trade in nodes where nation has no initial trade power.
This section may contain outdated information that is inaccurate for the current version of the game. The last version it was verified as up to date for was 1.14.
- Merchant republics have +1 merchant.
- Some events can give a national modifier that temporarily provides +1 merchant.
- The East India Trade Company decision gives +1 merchant. This requires being a country with the western technology group and diplomatic technology at level 10, at least two ports, and one province in the East Asian Trade Ports region owned.
- Countries that control one of a number of trade nodes have the Confirm Thalassocracy decision (requires all maritime ideas and control of several specific trade nodes), which gives +1 merchant.
|Available only with the Wealth of Nations DLC enabled.|
- Nations get +1 merchant for each trade company they control with the majority of the provincial trade power in a region.
|Available only with the El Dorado DLC enabled.|
|Available only with the The Cossacks DLC enabled.|
Merchants can only reach nodes at this distance from a cored province (or a cored province of a subject nation or a nation granting Naval Basing Rights). The distance is measured to the central province of the node, visible on the trade map mode. Base trade range is increased by Diplomatic technology (100 at tech 1 and 400 at tech 32) and some decisions and ideas.
- Trade Range is increased by certain ideas and policies.
Merchants can be sent to a trade node to perform one of two missions (as denoted in game interface):
- Collect from trade sets merchant to convert trade value into trade income.
- The merchant sent to collect from trade node grants a +10% bonus to trade income. Note that nations will automatically collect from their home nodes even if they do not have a merchant present. Collecting trade income from a non-home node halves the country's trade power in that node. (The tooltip shows additive penalty to display -50% penalty applied multiplicatively after all bonuses. For example, if a nation has a +40% trade power modifier before the collecting penalty, the listed penalty will be -50%*140%, that is, -70%.)
- Transfer trade power (This is a misnomer) Allows the user to steer trade value.
- This allows the nation to choose the downstream link to transport value to. The destination link can be selected in Trade mapmode. Note that in the case of no merchant presence, the nation will still transport value to some link, but this default link is not configurable. Every steering merchant grants a nation +10% bonus to trade power in home node (capped at +100% for 10 merchants) but that applies only if no merchant is collecting in a non-home node.
This section may contain outdated information that is inaccurate for the current version of the game. The last version it was verified as up to date for was 1.19.
The trade income a nation collects in a trade node is calculated as follows:
Trade efficiency is added as a bonus modifier to trade income. Base trade efficiency is defined by diplomatic technology but it can also be increased by certain ideas and policies (capped at +200%).
|+20%||Diplomatic technology: Ahead of time|
|+15%||Admiral with ‘Extortioner’ trait|
|+20% −10%|| Burghers estate|
(depends on influence and loyalty)
|−5%||for every embargo against non-rival countries|
- Main article: Naval warfare#Privateering
|Available only with the Wealth of Nations DLC enabled.|
Any fleet that contains light ships can be sent on a privateering mission to any trade node within trade range. The fleet will hoist the Jolly Roger and add the trade power of its light ships (plus a bonus) to a dummy "pirate" nation in the node, thus reducing the trade power share of everyone in the node - including their controller, though a portion of the trade value lost this way is returned to the controller, listed in accounts as "spoils of war". Unlike protecting trade, privateers can be sent to nodes a nation has no power in, making it a way of weakening the nation's enemies or gaining revenue from nodes it can't touch otherwise. Privateering a rival's trade generates power projection.
- Main article: Naval warfare#Hunt pirates
|Available only with the Mare Nostrum DLC or the El Dorado DLC enabled.|
This mission is available to fleets which contain at least one ship that isn't a transport. Fleets containing heavy ships or light ships may hunt pirates in any non-inland trade node; however, fleets containing only galleys (as well as fleets which are a mixture of galleys and transports) can only hunt pirates in nodes where all nearby sea provinces are inland seas.
Pirate-hunting fleets reduce the trade power taken by the dummy "pirates" nation in the chosen trade node by reducing their privateer efficiency. They do not actually damage or take damage from any ships.