Examlex
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Comparative Advantage
The ability of an entity to produce a good or service at a lower opportunity cost than others.
Absolute Disadvantage
A situation where an individual, country, or company is less efficient in producing goods or services compared to another.
Opportunity Cost
The rejection of advantageous prospects from other paths when one path is chosen.
Free Trade
The absence of restrictions or tariffs on the import and export of goods and services between countries, allowing for the unimpeded flow of goods, services, and capital.
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