ABSTRACT
Some countries are more efficient at producing across a whole range of goods and services than others (e.g. the USA) and in this sense they are said to possess an ‘absolute advantage’ in production. However it will still benefit such countries to specialize in producing those goods and services which is the very best at producing (where it has a ‘comparative advantage’ over other countries) and trading where its comparative advantage is less strong. This is really an example of playing to your own strengths and specializing.
