(Suranovic 1997)
Given the list of such 'unrealistic' assumptions made in the model, it is easy for us to dismiss the results of comparative advantage altogether or to accept it with a large dose of skepticism. But would such dismissal be justified? It is prudent to remember that almost all economic theories operate under a large number of 'unrealistic' assumptions that do not apply to the much more complex real world. In fact, we deliberately simplify the variables in economics in order to be able to construct models and to carry out analysis. Such simplification does not make all economic analysis redundant. It should also be remembered that comparative advantage and international trade would work to the benefit of all individuals and countries only if certain conditions are fulfilled, e.g., all resources are fully employed worldwide, these resources are allocated to each country's competitive advantage industry(s) and all countries are allowed to trade freely. Moreover, like most other economic theories, the model of comparative advantage does not give us a definite answer about the benefits of trade between countries -- it only points to certain likely possibilities that may occur as a result...
(Ibid)
References
David Ricardo and Comparative Advantage." (2004). Net MBA.com. Internet Center for Management and Business Administration. Retrieved on November 17, 2004 at http://www.netmba.com/econ/micro/comparative-advantage/
Suranovic, Steven. (1997) "The Theory of Comparative Advantage - Overview." International Trade Theory and Policy. Retrieved on November 17, 2004 at http://internationalecon.com/v1.0/ch40/40c000.html
Colonel Robert Torrens (1780-1864) was a British army officer and owner of the Globe newspaper
David Ricardo (1772-1823): British economist and businessman who was a great proponent of 'free trade.' which both are able to produce the Polish-American mathematician who helped to develop the theory of hydrogen bomb
Wealth of Nations (Book IV, Section ii, 12), quoted by Steven Suranovic
This example has been summarized / adapted from "David Ricardo and Comparative Advantage," NetMBA.com
The only differences recognized in the Ricardian Model are the differences in technology and labor productivity across the countries
Comparative Advantage
