Absolute advantage

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In economics, the principle of absolute advantage is the ability of a party (an individual, or firm, or country) to produce a good or service more efficiently than its competitors.[1][2] 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. Since absolute advantage is determined by a simple comparison of labor productiveness, it is possible for a party to have no absolute advantage in anything.[3]

  1. ^ "Absolute Advantage". Investopedia. 2023-06-08. Retrieved 2023-06-27.
  2. ^ "Absolute advantage | economics". Encyclopedia Britannica. Retrieved 2020-10-21.
  3. ^ Cite error: The named reference encyclopedia 1 was invoked but never defined (see the help page).