Question

Based on your results, how much does the captive offshoring model allow for risk? the answer is the difference between the tcos of the two models.

Answer 1

The captive offshoring model allows for risk solely based on the Ricardian model.

What is the Ricardian model?

• While the Heckscher-Ohlin model exclusively examines trade in finished goods, the Ricardian model can be used to assess offshoring.
• There is no distinction because offshore may be studied using the offshoring, Ricardian, and Heckscher-Ohlin trade models.
• The Ricardian model is an economic theory that proposes that countries export what they can produce most efficiently and plentifully.
• Ricardian model is used to evaluate trade as well as, the equilibrium of trade between two countries that have varying specialties and natural resources
• The Ricardian model shows that if anyone wants to maximize total output in the world, then one should fully employ all resources worldwide, allocate those resources within countries to each country's comparative advantage industries, and allow the countries to trade freely thereafter.

To learn more about Ricardian model with the given link

brainly.com/question/24261385

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