what determines the pattern of international trade between two countries in the ricardian model?

What is Ricardian theory of international?

The Ricardian international trade theory makes three assumptions: there is no movement of production factor among countries, the only production factor is labour, and labour productivities are fixed.
Among these assumptions, Ricardo himself admits only the first.

What is the Ricardian trade pattern?

The Ricardian Model demonstrates how, thanks to comparative advantage, two countries can still benefit from trade even when one country is less productive in both goods.
Here, each country should focus on producing the good it is relatively less bad at – i.e., the good for which it has the lowest opportunity cost.

What determines relative wages between countries in the Ricardian model?

The Role of Relative Wages in the Ricardian Model
Given two countries and two goods, if the productivity of workers with regards to each good varies across countries, then each country has a comparative advantage in producing the good wherein it has relatively more productivity.

Ricardo's insight was that such a country would still benefit from trading according to its comparative advantage—exporting products for which its absolute advantage was greatest and importing those for which its absolute advantage was comparatively less.