A nation's absolute advantage is measured in relation to other nations. A nation has an absolute advantage in the production of a product any time it can produce that product at a lower cost than can other nation. A nation's comparative advantage is measured in relation to all of the goods and services the nation produces. A nation has a comparative advantage in those products that have the lowest opportunity costs.
By specializing in the production of the product it can produce mo.st efficiently, each nation is able to make the best use of its available resources. International trade then allows each nation to enjoy the most products at the lowest opportunity costs.
Words and Expressions
absolute advantage - абсолютное преимущество
calculate the economic benefits - подсчитывать экономическую выгоду
comparative advantage - сравнительное преимущество
cost n - стоимость
decrease in self-sufficiency - уменьшение экономической самостоятельности
economic interdependence - экономическая взаимозависимость
international trade - международная торговля
manufactured goods - промышленные товары
narrow range of products - ограниченный ассортимент продукции
productivity n - производительность
specialization n - специализация
unequal distribution of resources - неравномерное распределение ресурсов
voluntary exchange of goods - добровольный обмен товарами
well-developed means of production for goods - хорошо развитая база средств производства товаров
well-tapped natural resources - хорошо разработанные природные ресурсы