What are the advantages and disadvantages of regional trade areas such as the European Union and NAFTA

What are the advantages and disadvantages of regional trade areas such as the European Union and NAFTA?

Opportunity Costs & Ricardian Modelling

See attached file for full problem description.

Comparative Advantage

An examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially) beneficial for each of the two trading partners since it allows for an expanded consumption choice for each. However, for the world as a whole the expansion of production of one product must involve a decrease in the availability of the other, so that it is not clear that trade is better for the world as a whole as compared to an initial situation of non-trade (but efficient production in each country). Are there in fact gains from trade for the world as a whole? Explain.

International economics

See attached file for full problem description. You can get information from the class homepage: http://www.stanford.edu/~rstaiger/Economics.165.htm Please solve the problem based on the instructor's style.

Futures/Margin

One Chicago has just introduced a new single-stock futures contract on Brandex stock, a company that currently pays no dividends. Each contract calls for delivery of 1,000 shares of stock in one year. The T-bill rate is 6% per year. a. If Brandex stock now sells at $120 per share, what should the futures price be? b. If the Brandex price drops by 3%, what will be the change in the futures price and the change in the investor’s margin account? c. If the margin on the contract is $12,000, what is the percentage return on the investor’s position?