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Potosi Mines

Definition

The Potosi Mines were silver mines located in the city of Potosí, Bolivia. They were discovered in 1545 and became famous for being the largest source of silver during the Spanish colonial period.

Analogy

Think of the Potosi Mines as a giant piggy bank for Spain. Just like how you might save up coins in your piggy bank at home, Spain was able to extract vast amounts of silver from these mines, which significantly boosted their economy.

Related terms

Colonialism: This refers to the policy or practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting it economically.

Mercantilism: An economic theory that trade generates wealth and is stimulated by the accumulation of profitable balances, which a government should encourage by means of protectionism.

Silver Flow: This term refers to the movement or circulation of Spanish silver from the mines in Americas (like Potosi) to Spain and then to Asia, particularly China. It played a significant role in early global trade.