Explain the term absolute advantage as it used in international trade

Economics

ScanSolve AI Answer

Absolute advantage in international trade refers to a country's ability to produce a good or service using fewer resources (e.g., less labor, land, or capital) or producing more output with the same amount of resources than another country. This means one country is simply more efficient at producing a specific item. For example, if Country A can produce 10 tons of wheat with 100 workers, while Country B can only produce 5 tons of wheat with 100 workers, Country A has an absolute advantage in wheat production.

Was this helpful?

Still stuck on this one?

Ask a follow-up, and the answer starts from this question.

Got a different question?Ask your own question