The economic basis for trade is based on absolute advantage.

Name: The economic basis for trade is based on absolute advantage.
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The economic basis for trade is primarily based on comparative advantage, not absolute advantage. Comparative advantage suggests that even if one country is less efficient at producing all goods compared to another country, there can still be benefits from trade if each country specializes in producing the goods for which it has the lowest opportunity cost.

The Economic Basis for Trade Is Based on Absolute Advantage