Describe the concept of absolute advantage within the framework of glo

QUESTION

Describe the concept of absolute advantage within the framework of global business.

What will be an ideal response?

ANSWER

Answer: A country is said to have an absolute advantage when it has a monopoly on producing a product more cheaply or efficiently than any other country can.
Explanation: Natural and technological resources are not distributed equally among countries. When a country has virtually all the capacity to produce a particular resource or product, it has an advantage over all other countries. Absolute advantage is extremely uncommon on a global basis.