Difference in assumptions as compared to the Ricardian Model:
The H-0 model incorporates a number of realistic characteristics of production that are left out of the simple Ricardian model. Recall that in the simple Ricardian model only one factor of production, labour, is needed to produce goods and services. The productivity of labour is assumed to vary across countries, which implies a difference in technology between nations. It was the difference in technology that motivated advantageous international trade in the model. It is worth-highlighting that a major distinction between the H-0 model and the Ricardian model is in terms of technology-assumption. The production technologies differ between countries in the Ricardian framework whereas the H-0 model assumes that production technologies are the same. The reason for the identical technology assumption in the H-0 model is perhaps not so much because it is believed that technologies are really the same (although a case can be made for that), instead the assumption is useful because it enables us to visualise precisely how differences in resource endowments are suficient to cause trade and its concomitant impacts.