In economics, the principle of absolute advantage is the ability of a party (an individual, or firm, or country) to produce a goods or service more efficiently than its competitors. The Scottish economist Adam Smith first described the principle of absolute advantage in the context of international trade in 1776, using labor as the only input.
In economics, the principle of absolute advantage is the ability of a party (an individual, or firm, or country) to produce a goods or service more efficiently than its competitors. The Scottish economist Adam Smith first described the principle of absolute advantage in the context of international trade in 1776, using labor as the only input.
Source: Wikipedia "Absolute advantage" · CC BY-SA 4.0
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