Difference between revisions of "Absolute advantage"

Latest revision as of 00:53, July 13, 2016

Absolute advantage is an economic term meaning the ability to produce the same amount of a good with less inputs than the competition.

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-Absolute advantage is an [[economic]] term meaning the ability to produce a good with more inputs than the competition.
+'''Absolute advantage''' is an [[economic]] term meaning the ability to produce the same amount of a good with less inputs than the competition.
-The term is important in the theory of international trade because it is often assumed that (to take an example) if France has an absolute advantage over England in some product, say cheese, then France will normally import cheese from England. A seminal analysis by the 19th-century English economist [[David Ricardo]] showed that despite France's absolute advantage, it may well harm both countries for England to produce and export cheese to France.
+[[Category:Economics]]
-[[Category:economics]]