Answer:
The annexation of Texas led to a war with Mexico which led to us gaining some more territory. He didn't want to do it because it would lead to a war, but did it anyway which declared war. In short, if you haven't figured it out already by taking the test for AZVA, he wanted to avoid war with Mexico.
The country being described would be "Spain," since this is the only other country the lies on this peninsula besides Portugal, and Spain was one of the dominant forces in New World conquest.
With increase in islamic population, the export will decrease and import will increase to arabia.. economy unbalance will take place
I think the answer is the setting
Ore and more protection/defense system
