Technology for Sale.

Free trade commodities has often been considered to lead to the optimum allocation of resources between countries. If factor returns are not equalized by such trade, further gains can be obtained by allowing national factors access to world markets. But if technology, in the form of blueprints, is different between countries, sale of gifts of such technology form advanced to less advanced countries can lead to further gains. Indeed, in the Recardian model developed in this paper the only asymmetry between countries that would affect relative pries in technology, so that if transfers are allowed, the basis for commodity trade is removed (except for any payments for technology tranfer or bribes to persuade recipients to adpt the superior technology).