Explore BrainMass
Share

Explore BrainMass

    absolute advantage and comparative advantage

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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

    © BrainMass Inc. brainmass.com October 9, 2019, 11:18 pm ad1c9bdddf
    https://brainmass.com/economics/comparative-advantage/absolute-advantage-and-comparative-advantage-252226

    Solution Preview

    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.

    $2.19