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Business Glossary

Business Definition for: absolute advantage

Dictionary of Business Terms

absolute advantage

in international economics, capability of one producer to produce a given good using fewer resources than any other producer. Japan produces television sets more efficiently than most other countries and so could be said to have an absolute advantage in this area.

Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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