[Answer] Why would a country want to establish absolute advantage?

Answer: to produce goods more efficiently than other countries
Why would a country want to establish absolute advantage?

In economics the principle of absolute advantage refers to the ability of a party (an individual or firm or country ) to produce a good or service more efficiently than its competitors. Adam Smith first described the principle of absolute advantage in the context of international trade using labor as the only input.Since absolute advantage is determined by a simple comparison of labor …

Classical theory and David Ricardo’s formulation. Adam Smith first alluded to the concept of absolute advantage as the basis for international trade in 1776 in The Wealth of Nations: . If a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it off them with some part of the produce of our own industry employed in a way in which we have some advantage .

Sun May 11 2003 14:30:00 GMT-0400 (Eastern Daylight Time) ยท An absolute advantage existed when the country could produce a commodity with less costs per unit produced than could its trading partner. By the same reasoning it should import commodities in which it had an absolute disadvantage. While there are possible gains from trade with absolute advantage comparative advantage extends the range of possible m…

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