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Extend the Ricardo’s Model 一、Review the Assumptions of Ricardo’s Model 二、Loose those assumptions and see what will happen to Ricardo’s model 三、Summary 四、Reference Books 五、Exercise Review the Assumptions One input: Labor(L) Two outputs Two countries Costs are constant and there are no economies of scale. Factors of production are perfectly mobile. Goods are identical. Perfect knowledge. No transport costs. No tariffs or other trade barriers Loose the Assumptions(1) Loose the Assumptions(2) Loose the Assumptions(3) International Trade under Increasing Opportunity Cost Autarky The Patten o