According to the absolute advantage principle, national prosperity is the result of a positive balance of trade, achieved by maximizing exports and minimizing imports.

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The absolute advantage principle, primarily associated with Adam Smith, suggests that countries should specialize in producing goods for which they have an absolute advantage (i.e., can produce more efficiently than other countries) and trade for other goods. It does not focus on achieving national prosperity through a positive balance of trade by maximizing exports and minimizing imports; that concept is more closely related to mercantilism.

According to the Absolute Advantage Principle, National Prosperity Is the Result