Short Answer Questions 1.Which one of the three basic international trade models (i.e., the Ricardian Model,...

Short Answer Questions

1.Which one of the three basic international trade models (i.e., the Ricardian Model, the Specific-Facotor Model, and the H-O model) do you like most, why? (Please explain with real world cases or relevant theories)

2.Talk about your gains and thoughts during and after studying international trade.

Expert Solution

Ans: In my point of view the Ricardian model is the best model of international trade because of the following reasons.

The Ricardian model is a very simple model in international trade so it is easy to understand and to implement.
This model is based on workforce productivity to define and explain the differences in international trade.
Under this model, workforce productivity means the efficiency of the labour to produce the goods and this will benefit international trade. High efficiency means high productivity is ultimately reducing the cost of production and it will help to increase the export of the country.
This model also includes the technological efficient workers which increase the productivity of the nation.

2. The gains and thoughts after studying international trade are as follows.

It provides a base to understand the basic difference between the costing of the product when we sell it beyond the domestic territory.
It is very important to understand the comparative cost theory in international trade.
The actual cause differences in international trade are also very important to understand the productivity enhancement and the increase of market share in the economy.

Rahul Sunny answered 2 years ago

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