Absolute Advantage
Absolute advantage exist when a country can produce a good or a service at a lower than other countries. This may result from an abundance of natural resources or raw materials in a country. An example is Saudi Arabria has an absoulute advantage in oil production.
Comparative Advantage
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Comparative advantage is a situation in which a country specializes in the production of a good or a service at which it is relatively more efficient. An example is we don't make shoes in the Untied States, we make technology instead.
Importing
Imports are items bought form other countries. The Untied States buys about half of its crude oil and fish from other countries. Without foreign trade, many things you buy would cost more thanor not be available.
Exports
Goods and services sold to other countries are called exports. Just as imports benefit you, exports benefit consumers in other countries. An example of a United States export is manufactued goods.