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Absolute Advantage

From The Austrian Economics Wiki, the global repository of classical-liberal thought
Revision as of 18:57, 2 March 2011 by Wobbles (talk | contribs) (added {{stub}})

Absolute Advantage is an analytical descriptive category of a entity (country, business, or individual) who is more efficient than its trading partners at all production. It is used as a device to describe why certain countries, despite their wealth and advantages, may trade with disadvantaged countries by way of the law of comparative advantage.