Does anyone mind explaining this to me? I have an exam for my International Business Course and I can not quite comprehend this.
Here's what my notes say.
A nation may have absolute disadvantages in the production of two goods with respect to another nation
Yet this nation has a comparative advantage or relative advantage in the production of the good in which its absolute disadvantage is lower
By specializing in the production of the good in which the country has lower comparative disadvantage, and importing other goods, the total goods available will increase
absolute advantage means that a nation can produce more of a service or good than another nation with less input (land, labor, capital).