One measure of this is the autarky price, which is an attempt to calculate what prices would be if all economies were self-sufficient.  
In a paper by Alan Deardorff on the general validity of the law of this concept, he demonstrates that it works when one takes an average across commodities, even though it falls apart for a small number of commodities. One measure of this is the autarky price, which is an attempt to calculate what prices would be if all economies were self-sufficient.  Paul Krugman [KROOG-man] updated this idea to include economies of scale, explaining discrepancies between the Heckscher-Ohlin Model and actual practice. An early attempt to explain this appeared in On the Principles of Political Economy and Taxation, which looked at the production of wine and cloth in England and Portugal. Name this idea propounded by David Ricardo, which explains how different production efficiencies in different countries cause both countries to benefit from free trade.
In a paper by Alan Deardorff on the general validity of the law of this concept, he demonstrates that it works when one takes an average across commodities, even though it falls apart for a small number of commodities.
comparative advantage