Absolute Advantage Theory

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Definition: Absolute Advantage Theory

Absolute Advantage Theory

Full Definition of Absolute Advantage Theory

Absolute advantage theory was introduced by the Scottish economist Adam Smith (1723-1790).

Absolute advantage theory asserts that a nation benefits from manufacturing more output than others since it is in the possession of a particular resource or commodity. This particular resource can also be a certain method or knowledge that increases the production efficiency and thus reduces the relative need to resources.

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Definition Sources

Definitions for Absolute Advantage Theory are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th March, 2020 | 0 Views.