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An absolute advantage is the ability of a country to produce a like good at a lower per unit cost compared to another country. A
An absolute advantage is the ability of a country to produce a like good at a lower per unit cost compared to another country. A comparative advantage is the ability of a country to produce a like good at a lower opportunity cost compared to another country. Can you explain why a country's comparative advantage is used to determine the terms of trade between countries? Is money accounted for at a global level?
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