The theory of absolute advantage states that if a country can produce more efficiently than another country, it should specialize in the production of that good.

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The theory of absolute advantage, developed by Adam Smith, posits that if a country can produce a good more efficiently (i.e., with fewer resources) than another country, it should specialize in the production of that good and trade for goods that it produces less efficiently.

The Theory of Absolute Advantage States That If a Country