Absolute Advantage

Absolute Advantage and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Absolute Advantage: The ability of a country to supply a particular product or class of goods at lower costs than competing nations. See also comparative advantage and competitiveness.

Definition of Absolute Advantage in International Trade

The following is a concept of Absolute Advantage in the context of international trade law, from the Dictionary of International Trade (Global Negotiator): In the theory of international trade an absolute advantage occurs when a country or company is more efficient (using fewer resources) at producing the same good or service than another country or company. This theory was first suggested by British economist Adam Smith in the 18th century. See comparative advantage.