If a country has an absolute advantage (with respect to trade) over another country, there is no reason to trade.

Question

Quizplus · Accepted Answer

Even if a country has an absolute advantage in producing all goods more efficiently than another country, both countries can still benefit from trade due to the principle of comparative advantage, which allows them to specialize in the production of goods for which they have a lower opportunity cost.

If a Country Has an Absolute Advantage (With Respect to Trade)