The concept of Absolute Advantage indicates that nations should encourage production in goods and services where those nations possess absolute production advantages over other nations.

Question

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According to the concept of Absolute Advantage, nations should specialize in producing goods and services where they have an absolute advantage, i.e. where they can produce more efficiently than other nations. This would lead to greater productivity, efficiency, and increased output, which can ultimately enhance the overall economic well-being of the nation.

The Concept of Absolute Advantage Indicates That Nations Should Encourage