A few days ago in another thread some of use were quite puzzled as to what effect if any Trade Agreements have. Well, Captain Fishpants was kind enough to advise the Forum that over at the .com there's a FAQ that gives some answers long open questions.
Here's the link to the FAQ
and here's what it says regarding:
Trade Agreements:
How does trade work?
Trade is established once there are roads present in two adjacent regions, or a port is built near regions which also contain ports. Ports come with a "free" trade fleet that carries the settlements trade goods to anotehr settlement - your merchants will look for the best price each turn. If you don't have any trade agreements your settlements will only trade among themselves. Send your diplomats out to negotiate trade deals with other factions and you increase the number of markets you can sell to, and therefore the chances of making more profit. But remember: all you have to do is create the infrastructure of roads and ports and then improve them. Your merchants will automatically do the rest.
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Blinking Icons:
What do the flashing icons mean on the city details scroll?
These represent effects that are about to disappear in the next turn. It might be that a trade route no longer exists, a building has been demolished, the garrison has left town, or you've just conquered the place. Think about what has changed for the settlement, and you should soon see a connection.
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Negative Cash Flows:
Why do cities earn negative amounts of money?
They aren't 'earning' negative amounts of money. When a settlement is shown with a negative cashflow it's a sign that it is not 'pulling its weight' in your economy. If possible improve its trade income (improve the markets and ports), look at the governor's vices very carefully, or reduce the size of your military forces. Military upkeep is divided between your cities according to their population, so just reducing the settlement garrison won't have a direct impact.
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