Comparative Advantage

Absolute Advantage
In international economics, the capability of one producer to produce a given good using fewer resources than any other producer.
Comparative Advantage
The concept of comparative advantage explains the efficiency of individuals or groups in particular economic activities compared to others, encouraging specialization and trade for maximum benefit.
Essential Industry
An essential industry is one deemed by society to be critical for political or economic reasons and must be localized within the economy irrespective of comparative advantages, often insulated from external trade. Examples include the defense industry.

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