Explain carefully why the assumption of identical technology worldwide

Explain carefully why the assumption of identical technology worldwide eliminates the classical basis for international trade.

What will be an ideal response?

ANSWER

In the classical model, differences in technology between the two countries lead to differences in autarky prices. If one were to replace that assumption with the HO assumption of identical technologies, the autarky prices would be identical, and there would be no reason for trade to begin between the two countries.