Mercantilism, sailors and pirates:

1. What made trading between nations so crucial to the Early Mercantile powers?

Explain therories: Mercantilism, Theory of Absolute Advantage, and Theory of Comparative Advantage- please compare and contrast.What is your understanding of each theory? What are the pro and cons of each? Do these theories help answer the question of why countries trade and engage in FDI (Federal direct Investment)? Why or why not?

The basic economic ideology concerning market activity in Feudal times arose from the Church via Canon Law and enforced by religious beliefs and the guilds.

Name, describe, and explain two important factors that helped undermine the feudal economic structure and open the door for the emergence of the mercantile society. Be sure to in - clude an explanation of why these factors were important. These elements may have an ideolo-gical, political, or economic connection.

Does the Crusades and the Black Death are a good two key factors that helped erode the Feudal economic structure and pave the way for the emerging mercantile society???

A US firm expects to receive €600,000 in payment from a customeron March 31. What position should the firm take if it wants tohedge the risk associated with this payment a. using a forwardcontract? b. using futures contracts on the Chicago MercantileExchange? c. using an OTC option? (please be specific what positionshould be used, such as long or short and along those line).