explain the following Assumption of Ricardian Model

• There is full employment in the economy.
• The economy is characterized by perfect competition.
• There are only two countries and two commodity in the world
• The costs of production are constant
• The level of technology is fixed for both countries
• The factors of production are completely immobile externally, that is, they do not move between countries

explain the following ASSUMPTIONS OF THE H/O TRADE MODEL

• Both countries have identical production technology
• Production outputs have constant returns to scale
• Labour mobility within the country without cost
• Labour immobility between the countries.
• Amount of availability of capital and labour influences productivity
• Technologies used to produce the two goods differ in the economy.