The first consequence of sales was to facilitate the capture of the colonial administration by local elites, enabling self-dealing across its ranks. By examining the composition of audiencia councils, the chapter shows that the value of offices under their watch (corregimientos, alcaldias) exponentially increased with the share of purchasers in the audiencia, consistent with laxer oversight. The effect is driven by the audiencias, where the Crown was less concerned about the quality of its members as they faced lower geopolitical threats. It is also driven by the influx of audiencia members with strong local connections that would particularly benefit from colluding with lower-level officials. This statistical evidence helps substantiate historical accounts of profitable complementarities between audiencia members and corregidores and alcaldes in the territories (now countries) of Peru, Bolivia, Ecuador, and Chile. These networks and connections would prove difficult to eradicate, even after the end of sales.

What is the relevance of global politics and international relations for companies, managers, and work? How will it impact your company and why should you care? This chapter identifies how changing global order thrusts upon all global businesses to respond to and actively manage geopolitics. Companies have to balance corporate interests with broader security externalities that their governments emphasize because geopolitics and economics are closely intertwined. Geopolitical risk arises when states prioritize national security and limit how companies leverage their assets in generating economic rents. A key factor shaping how a company will be impacted by the risk is its corporate nationality. Geopolitical risk in a given market is higher for companies from perceived rival countries than those from friendly ones. In order to assess the impact of geopolitical risk on their firm, companies, managers, and employees can focus on a structural perspective that emphasizes four levers that reshape the basic market structure for global companies: market access, level playing field, investment security, and institutional alignment. Ultimately, while navigating geopolitical tensions is increasingly a part of the job for many managers, it can also come at a cost to the company.