The simplistic model of the comparative advantage theory used in the text assumes that trade changes a country's stock of resources and the efficiency with which it utilizes those resources.

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A simplistic model of the comparative advantage theory assumes that each country has a fixed stock of resources and that free trade does not change the efficiency with which a country uses its resources.This static assumption makes no allowances for the dynamic changes in a country's stock of resources and in the efficiency with which the country uses its resources that might result from free trade.

The Simplistic Model of the Comparative Advantage Theory Used in the Text