The Ricardo Model, developed by economist David Ricardo in the early 19th century, explains international trade through the concept of comparative advantage. This model suggests that countries should specialize in producing goods where they have a lower opportunity cost, allowing for more efficient resource allocation and increased overall production. In the Ricardo Model, even if one country is less efficient in producing all goods compared to another, trade can still be beneficial. By focusing on their strengths, countries can trade surplus goods, leading to mutual gains and improved economic welfare for all parties involved.