9. The logic of service outsourcing - The Ricardian model It is sometimes argued in editorials or TV commentaries that the modern wave of outsourcing, especially outsourcing of services to Pakistan, dees the logic of the Ricardian model. Let's examine if this is actually the case. The following table presents information on labor productivity in computer component production and call center services in the United States and Pakistan. Assume that the United States has an absolute advantage in both. To complete the following table, choose the number of calls that would be most plausible and consistent with the reality of outsourcing services to Pakistan, and indicate the good in which each country has a comparative advantage. Production per Employee Computer Components Call Center Services Country ( Units per hour) (Phone calls per hour) Comparative Advantage Pakistan 4 v V The United States 24 12 v Does the observed pattern of outsourcing from the United States to Pakistan, where Pakistan exports V , defy the logic of the Ricardian model? 0 Yes 0 No