Difference in assumptions as compared to the Ricardian Model Assignment Help

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Difference  in assumptions as compared  to the Ricardian Model:

The  H-0  model  incorporates  a  number of realistic characteristics of production that are left out of the simple Ricardian model. Recall that  in the simple Ricardian model only one factor of production, labour, is needed  to produce goods and  services. The productivity of labour is assumed to vary across  countries, which implies a difference  in technology between nations. It was  the difference in  technology that motivated advantageous international trade  in  the model.  It is worth-highlighting  that a major distinction  between the H-0 model and the Ricardian model  is in terms of technology-assumption. The  production  technologies  differ between  countries  in  the Ricardian framework whereas the H-0 model assumes  that production technologies are the same. The  reason for  the identical  technology assumption  in the H-0  model is perhaps not so much because it is believed that technologies are really the same (although a case can be made for that), instead the assumption  is useful because it enables  us  to visualise precisely how  differences  in resource endowments are suficient to cause trade and its concomitant impacts.  

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