Hanging in chains often followed the death penalty for felons, especially pirates, who would be executed, covered in tar and then hung up to decompose as a warning to others.
Lisbon is the capital of Portugal. It was always a key trading port, being a convenient starting point for voyages across the Atlantic to the Americas. By Defoe's time, the Portuguese Empire was on the wane, but Lisbon was still an important centre of world power.
So the Lord blessed the latter end of Job more than his beginning: for he had fourteen thousand sheep, and six thousand camels, and a thousand yoke of oxen, and a thousand she asses. He had also seven sons and three daughters.
Crusoe's earlier chewing of tobacco was based on the same medical philosophy.