How does an absolute theory for trade differ from Relative theory of trade?

Good question, I thank him:

  1. theory of absolute advantage: -

Belonging to (Adam Smith) is a Scottish economist Adam Smith early drafters of international trade theories

Considering that the exchange of trade established the existence of an absolute Meza resulting from absolute Nvaqat of one of the States in the face of other nations.

2. The theory of comparative advantage: -

Especially the British economist David Ricardo ..........

It talks about the relative theory Budget or comparative advantage in international trade process based on natural potential of each country.

Thanks for invitation

1.  A country is said to have an absolute advantage in the production of a good when it is more efficient than another country in the production of that good, ie when it can produce more of a particular good with a given amount of resources than another countriy

2. The law of comparative advantage ( or comparative costs) states that two countries can gain from trade when each concentrates on the production of that good in which it has greatest comparative advantage. Comparative advantage occurs  when one country can produce a good or service at a lower opportunity cost than another. This simply means a country can produce good at lower cost than  other countries

3.This is different to absolute advantage which looks at the monetary cost of producing the goods.

4. Even if one country is more efficient in the production of all goods( absolute advantage) than the  other, both countries will still gain by trading with each other, as long as they have different relative efficiencies.

Thanks for the invite, I agree with MR Georgie answer.

I agree with the answer given by frank mwansa   ACCOUNTING LECTURER and also by all other team members.

agree with Mr George >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Thank You for the invitation ... I would agree with the answers that really covered your question (especially Mr. Adam's answer) .. Variety of correct info and opinions !

• • The producer that requires a smaller quantity inputs to produce a good is said to have an absolute advantage in producing that good.
  • Comparative advantage refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another.
  • The existence of a comparative advantage allows both parties to benefit from trading, because each party will receive a good at a price that is lower than its opportunity cost of producing that good.

Thank you for the invitation and I agree with the answer, Mr. Frank

Comparative advantage is more common and fosters greater trade, so I would say that comparative advantage is a better way to explain trade.

From unc.edu: absolute advantage: A country, individual, or firm has an absolute advantage in producing a good if production of the good absorbs fewer resources (or less time, in the case of an individual) than are required in other countries or by other individuals or firms.

comparative advantage: A comparative advantage in producing or selling a good is possessed by an individual or country if they experience the lowest opportunity cost in producing the good.

The law of comparative advantage: Mutually beneficial exchange is possible whenever relative production costs differ prior to trade.

Full Agree with mr. George in his answer

I agree with the answers

thank you