Final answer:
The Dutch West India Company faced setbacks in Brazil due to a revolt by Portuguese Catholics but established economic dominance in the Caribbean through piracy and trade. Domestic policies of religious and intellectual freedom strengthened the Dutch Republic's naval power and global trade via the Dutch East India Company. The Dutch engaged more directly with the Portuguese in Brazil, gaining control of key territories.
Step-by-step explanation:
Failure of the Dutch in Brazil and Their Dominance in the Caribbean
The Dutch West India Company (DWIC) experienced early victories but ultimately faced failures, particularly in Brazil. In the early 1630s, the Dutch successfully conquered parts of Brazil and forts in Africa, momentarily controlling the international sugar trade and the Atlantic slave trade. However, by 1645, Portuguese Catholics in Brazil instigated a revolt that ousted the Dutch. Concurrently in the Caribbean, the Dutch established economic dominance through piracy and smuggling, which challenged Spain's authority in the region. Despite these successes in economic terms, the Dutch managed to hold onto only a few small Caribbean islands politically.
Dutch Republic's Liberal Policies
The Dutch Republic's liberal policies, which allowed intellectual and religious freedom, transformed the small nation into a significant European power. This freedom, combined with an influx of immigrants from diverse backgrounds, contributed to the Netherlands' formidable presence in Europe and overseas. The Dutch East India Company (DEIC) continued this trend by becoming a critical player in the global marketplace, shipping spices, slaves, and sugar across continents.
The Dutch vs. the Portuguese
In the geographical contest between the European powers, the Dutch took a less conspicuous approach in weakening Spain by engaging in piracy, whereas the French contested Spanish power by trying to settle in Florida. The Dutch confronted the Portuguese more directly, capturing strategic locations in Brazil. This aggressive stance against the Portuguese led to their control over crucial territories, albeit temporary, due to various challenges.