Tributary System

For centuries, in periods of unity, trade in the Kingdom of Long was characterized not by a free market but by a tribute system. Vassals, tributary states within the king's sphere of influence and private groups wishing to be admitted to practice trade in the Long interior defer to the King of Long and present him with tribute to demonstrate their loyalty. The size and value of a tribute not only affected the king's opinion but was also used to display wealth and status on the world's stage.

Often the act of suzerain states paying tribute has been primarily symbolic, and often the tributary expressing deference to the King of Long is given in return items of equal or greater value by the King.

Tributary Economy

At its height the tributary system would dominate the kingdom's economy. Taxes from vassals and subjects, and tributes from suzerain states would all be received by the crown. The crown would then distribute allowances to vassals and communities. Other wealth was used to pay for infrastructure and building projects; salaries for official and civil servants; gifts to favored subjects or it was simply hoarded by the king. Most rare luxury items and imports (if any) were given by the king to nobles and high officials, occasionally they would trickle down to lower rungs of society.

Some philosopher's paint an idealist view of the tributary system in full force: they imagine the king extracted from the population no more than they could afford and that resources were then redistributed through the civil administration so as to meet subjects needs (on a community or even an individual level). This is presented as a favorable alternative to the modern free market system.

In more recent times, tribute and obeisance might be required of merchant groups in order for them to have the privilege of conducting trade in the kingdom.

Cetacian City States

Free trade was always preserved in the Cetacian colonies. Some kings treated this as a "special economic zone" and appreciated that this trade benefited the kingdom, some kings allowed the colonies to trade in return for payment of a special tax (similar to the King of Hu). There were a few short periods where the kings outlawed this free trade, but trade always continued clandestinely.