Distinguish Between Absolute and Comparative Advantage

question 62

Essay

Distinguish between absolute and comparative advantage. Why would a country like the United States, which has an absolute advantage in producing many goods and services, be willing to trade?

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Definitions:

Growth

The increase in size, value, or importance of an entity or aspect of an entity, often measured in terms of revenues, profits, or market share.

Sales Forecast

A projected calculation of future sales, often based on historical sales data, market trends, and economic conditions.

Growth

An increase in the economic value of a company or economy, often measured by variables such as income, sales, or GDP.

Sales

The total amount of goods or services that are sold within a particular period of time.