Differentiate Between Absolute and Comparative Advantage

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The Answer is While both concepts provide a rationale for trade between regions or countries,there is a difference.Absolute advantage postulates the trade is beneficial when the two regions or countries each have an advantage in producing one of two products in terms of cost.Absolute advantage recommends that they each produce the one product where they have the advantage and then trade which will be mutually beneficial.Whereas comparative advantage postulates that even if one country or region has a low cost advantage for both products,trade can be beneficial if the low cost country has a comparative advantage in one of the products

Differentiate Between Absolute and Comparative Advantage

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