Explain the economic significance of

Clayton-Bulwer and Gadsden Purchase.

Gadsden Purchase was the last time serious expansion of the mainland of the United States, which finally formed their border with Mexico.

The main reason for the acquisition of land was the developed transoceanic railway project, which was supposed to pass in these places. In addition, strained relations remained with the leadership of Mexico, unhappy with the amount received from the United States under the agreement in Guadeloupe-Hidalgo. James Gadsden, who had financial interests in the implementation of the railway project, on behalf of US President Franklin Pierce concluded this deal with representatives of Mexico.

The deal also involved the construction of a transoceanic canal on the Mexican isthmus on the Mexican Territory. This condition has never been implemented.

In 2009, economist David Barker calculated that the Gadsden Purchase probably did not make a profit for the United States. But he admits that current historical estimates take it for granted that the purchase was good for the United States, despite the fact that the region brings little tax revenue. In addition, it was a purchase of an extremely valuable strip of territory, which more than paid for itself in subsequent mineral and agricultural resources.

Clayton-Bulwer Purchase regulated the question of the shipping channel between the Atlantic and Pacific oceans, which was supposed to dig through the territory of Nicaragua. The parties pledged not to acquire exclusive control over the canal, not to strengthen it, not to seize any new territories in Central America, to guarantee the neutrality of the canal, to consider it open on equal terms to all countries that adhere to these principles, and apply these principles to any another inter-ocean canal or railroads through Central America. The Clayton-Bulwer Treaty, which gave the United States equal status with Great Britain in Central America, was a compromise.