Describe Adam Smith’s Absolute Advantage theory.
The Absolute Advantage theory is described as an ability of a party, which includes individual, a company, or a country, to produce in a great quantity of goods, services, and products than your competitors, well using the same amount of resources. This theory was first used to describe a principle in a way that international trade, by which labor as an only input. Although since absolute advantage is categorized by the comparison of labor productiveness, it is possible for a party to have not acquired any absolute advantage in anything.
2. Describe Ricardo’s Comparative Advantage theory.
The Comparative Advantage Theory is described as a reason for countries to engage in international
The Absolute Advantage theory is described as an ability of a party, which includes individual, a company, or a country, to produce in a great quantity of goods, services, and products than your competitors, well using the same amount of resources. This theory was first used to describe a principle in a way that international trade, by which labor as an only input. Although since absolute advantage is categorized by the comparison of labor productiveness, it is possible for a party to have not acquired any absolute advantage in anything.
2. Describe Ricardo’s Comparative Advantage theory.
The Comparative Advantage Theory is described as a reason for countries to engage in international