“What is Absolute Advantage?”
- A concept mainly used to explain international trade
- It is where a country focuses on the area they are good at, hence their advantage. They then trade for what other countries are good at
Life Application/Analogy
If FanumLand is better at making microwaves than KaiCenatLand, and KaiCenatLand is better at making toasters, then each land will focus on producing what they have an advantage in and then trade with each other for what they do not have an advantage in.
How do I remember it?
Simply think of having an advantage in something over others. You will focus on the advantage you hold because it is what you are good at. Remember the word advantage and think about absolutely focusing on that.
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