Replies

Although the results follow logically from the assumptions, the assumptions are easily assailed as unrealistic.

Yeah, unrealistic is the polite way to put it. Some old division of labor stuff with a few fancy new words. The problem is that international relations must be competitive. Otherwise we'll get a regulated, planned, world economy where the One-Worlders sit in the middle controlling everyone else. Their advantage really doesn't compare. The rest will simply struggle to be "more efficient", longer working, less eating and most importantly less thinking serfs.

The usual way of stating the Ricardian model results is to say that countries will specialize in their comparative advantage good and trade them to the other country such that everyone in both countries benefit.

Big problem. Country by country specialization means dependence. Dependence means lost sovereignty. In todays high-tech world, flexibility is easy to achieve and there is no much need for specialization. But many governments are falling all over themselves to regulate and litigate the independent small producers out of existence. That's what the special interest wants, that's what they do. Silly economic theories are just the cover - bought and paid for.