What does Absolute advantage mean?

Absolute advantage meaning in Economics Dictionary

here is the easiest yardstick of economic overall performance. If a person individual, firm or country can create more of one thing with the exact same number of work and resources, they will have a total advantage on other manufacturers. Being ideal at anything doesn't mean that performing that thing is the greatest way to use your scarce economic resources. The question of what to specialise in--and how-to increase the advantages from worldwide trade--is well decided in accordance with relative advantage. Both absolute and relative benefit may transform notably in the long run.

Absolute advantage meaning in Law Dictionary

country who can more efficiently generate a good or service than another. This is a big advantage in business. This theory was first suggested by the UK economist Adam Smith as an extension of his division of labor doctrine. Other terms that might help are absolute cost advantage and competitive advantage.

Absolute advantage meaning in Business Dictionary

within the principle of international trade, a country or firm has actually a total advantage if it could create a product (great or solution) much more 'efficiently' (cheaply) than others. Initially recommended by the UK economist Adam Smith (1723-90) as an extension of their division of labor doctrine. See additionally absolute cost benefit and competitive advantage.