Limits on Small Trading Posts
A country may own any number of trading posts. However, when a country owns too many small trading posts (level 1 or 2), it gets penalized on creating new ones. You get a certain number of small posts without causing the penalty. After that, every small trading post not offset by a larger-than-average one (level > 3) will create a -1% penalty on the chance to create new trading posts.
The exact way this works is as follows. The levels of all of your trading posts are added together along with your monarch's administrative rating. Then 3 times the number of trading posts is subtracted. If the resulting number is still less than zero, it becomes the malus on later trading post attempts.
For example, a country's monarch has admin 7, and it has 11 trading posts with the following sizes: level 1, 1, 1, 1, 1, 1, 1, 1, 3, 5, and 6. To calculate the malus in this case, we add all the levels up along with the admin rating: 1+1+1+1+1+1+1+1+3+5+6, +7 = 30. Then we subtract 3 times the number of trading posts, that is, 33. The resulting number is -3; a malus of -3 applies to the percentage chance of any new trading post creation attempts. This country should expand three trading posts before attempting new ones.