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absolute advantage and comparative advantage

Define and explain the difference between absolute advantage and comparative advantage. What is the significance of each in international trade processes?

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1. Define and explain the difference between absolute advantage and comparative advantage. What is the significance of each in international trade processes?

Absolute advantage
The term absolute advantage states that the ability of a country or form or to produce a good or service at a lower cost than the cost at which any other entity produces ...

Solution Summary

Contrast absolute advantage and comparative advantage.

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