Question

examples of where a country/Today/ has an Absolute Advantage, and why there is an increase in Comparative Advantages in today's economy.'

Answer 1

When an individual, or firm, or country is using same amount of resources to produce a greater quantity of a good, product, or service than other countries or producers or competitors, called as absolute advantage.

Example india abudance of low cost labour market then other countries like phillipins, USA uk provide call centre serve at lower cost.

a lower opportunity cost to produce good and services than that of trade partners is caller as comparative advantage .which gives a company to sell products at lower prices copsre to other producer or countries or competitors and gives good sale margin. For this one should have capital and technological as well as human capital advancement over other countries and very efficient use of resources, fast Movability and higher productivity.

Energy rich countries have all the factor than other competitor to have more compartive advantage in the field of petrochemical chemical, lubricant etc.