absolute advantage |
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Definition
In the theory of international trade, a country or firm has an absolute advantage if it can produce a product (good or service) more 'efficiently' (cheaply) than others. First suggested by the UK economist Adam Smith (1723-90) as an extension of his division of labor doctrine. See also absolute cost advantage and competitive advantage.
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absolute advantage is in the Decision Making, Problem Solving, & Strategy, Economics, Politics, & Society and International Trade & Relations subjects.
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