ABSTRACT
A country has an absolute advantage in trade in a specific good with another country if it can use fewer inputs and real resources in producing that good. This means that the costs of the commodity will be lower in terms of money. For example, certain countries in the world have an absolute advantage over France or Germany in producing bananas, simply because their climate is conducive to banana production. If you have one type of resource, then a producer with lower use of inputs has an absolute advantage.
