Absolute advantage occurs when a country can produce a good more efficiently, using fewer resources, than another country. It is the ability to produce a product at a lower cost, in terms of labor and resources, than its trading partners.
The ability of a country to produce goods at a lower opportunity cost compared to other countries, even if it doesn’t have an absolute advantage.
The exchange of goods and services between countries, allowing for increased efficiency and market expansion.
The cost of foregone alternatives when one option is chosen over another; crucial in determining comparative advantage