The economic system which governed the colonisation of the Americas was mercantilism or merchant capitalism. To be effective, mercantilism had to operate in tandem with colonialism to ensure that the wealth of the subordinated country belonged to the dominant one. It was believed that if the mother country could control all goods in and out of the colony, ensuring that no other country could trade with it, then she would have total control of the wealth that derived from the settlement. Thus, all goods produced in the Spanish colonies had to be exported to Spain and settlers could only officially purchase goods from Spain. Bullion and agricultural products would profit Spanish citizens and expand her treasury as well as increase employment and industries such as shipbuilding.
Spain took several steps to effect her monopolisation of the Americas. In the first place, to solidify her ‘discovery’ and ensure that her claim was recognised, effectively monopolising the Americas in accordance with her mercantilist aspirations, Isabella and Ferdinand sought the ratification of Pope Alexander VI. The Pope divided the world outside of Europe in half. Lands to the west of the Azores belonged to Spain and those to the east belonged to Portugal. This was the Treaty of Tordesillas, ratified in 1494 wherein Portugal would receive Brazil and West Africa, while all 'discoveries' in the Americas belonged to Spain. Though Spain and Portugal, Roman Catholic countries, believed that the Pope’s authority would ensure that Christian Europe would recognise their American claims, the Reformation resulted in Protestant countries such as England and Holland to whom his endorsement of the Treaty of Tordesillas meant very little. In fact, they believed that the Pope should not be involved in secular affairs such as this. France was also interested in Spain's overseas colonies and ignored the Pope's endorsement.
Answer:
Despite her attempts, England, Holland and France managed to oppose Spain's monopoly in several ways; through exploration, piracy/privateering/buccaneering, smuggling (trading illegally with Spanish colonists) and settlement
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