In the Ricardian model, one of the countries does not gain from trade, while another enjoys gains from trade when  Countries have similar technologies Correct Answer  One country is much larger than another   Countries have different technologies and are of comparable size You Answered  One country has comparative advantage in production of both goods

The Ricardian model of international trade suggests that countries should specialize in the production of goods and services that they can produce more efficiently than other countries. In this model, even if one country has an absolute advantage in the production of all goods (i.e., it can produce all goods more efficiently than the other country), there can still be gains from trade if each country specializes in the production of the good it produces most efficiently.

Here's a step-by-step explanation:

1. Suppose there are two countries (Country A and Country B) and two goods (Good X and Good Y).

2. Assume that Country A has a comparative advantage in the production of Good X, and Country B has a comparative advantage in the production of Good Y. This means that Country A can produce Good X at a lower opportunity cost than Country B, and Country B can produce Good Y at a lower opportunity cost than Country A.

3. According to the Ricardian model, Country A should specialize in the production of Good X and Country B should specialize in the production of Good Y.

4. The two countries should then trade. Country A should export Good X to Country B, and import Good Y from Country B. Similarly, Country B should export Good Y to Country A, and import Good X from Country A.

5. As a result of this trade, both countries can consume more of both goods than they could if they tried to produce both goods themselves. This is the gain from trade.

6. Therefore, even if one country is much larger than another or countries have different technologies and are of comparable size, both countries can still gain from trade if they specialize in the production of the good they produce most efficiently.

7. However, if one country has a comparative advantage in the production of both goods, the other country may not gain from trade. This is because the country with the comparative advantage can produce both goods more efficiently, and therefore has no need to trade.