Absolute advantage and comparative advantage, Macroeconomics

Differences between absolute advantage and comparative advantage?             

Ans) Absolute benefit and comparative benefit are two basic concepts to international trade. Under absolute benefit, one country can make more output per unit of productive input than another can. With comparative benefit, if one country has an absolute (dis)advantage in each type of output, the other may advantage from specializing in and exporting those products, if any exist.

 

Posted Date: 4/1/2013 3:54:55 AM | Location : United States







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