ECON 2DO3
ECON 2DO3
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ECON 2DO3 Trade and Technology: The Ricardian Model CHAPTER 2
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---85januari 20232022/2023
- Reasons countries trade goods with each other include: 
■	Differences in the technology used in each country (i.e., differences in each country’s ability to manufacture products) 
■	Differences in the total amount of resources (including labor, capital, and land) found in each country 
■	Differences in the costs of offshoring (i.e., producing the various parts of a good in different countries and then assembling it in a final location) 
■	The proximity of countries to each other (i.e.,...
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