Absolute advantage theory draws attention to the advantages countries hold in terms of certain activities.

Question

Quizplus · Accepted Answer

The statement is true. Absolute advantage theory focuses on a country's ability to produce goods or services more efficiently than other countries. It suggests that countries should specialize in producing goods or services where they have an absolute advantage and trade with other countries to obtain goods or services where they have a relative disadvantage.

Absolute Advantage Theory Draws Attention to the Advantages Countries Hold