Until the 1950s,most of the area rugs in the world were manufactured in Persia (Iran)and Pakistan.Artisans in these countries had developed techniques (dyes and knots)that were unique and that other production areas were not capable of reproducing.These areas enjoyed what Michael Porter would call an "absolute advantage."

Question

Quizplus · Accepted Answer

Michael Porter's concept of "absolute advantage" is actually not his; it's a term from classical economics, primarily associated with Adam Smith, referring to the ability of a country to produce a good more efficiently than other countries. Porter is known for his theories on competitive advantage and the value chain.

Until the 1950s,most of the Area Rugs in the World