Trading Advantages and Mutual Interest EXPLAIN Directions: Read p. 492-499 in your textbook and complete the activities on this page. Advantage: doing something better than a trade partner. Term Define Example Absolute Advantage Comparative Advantage Import Export 1. What is the difference between comparative and absolute advantage? 2. How does trade allow for specialization? 3. Thinking of scarcity and trade, how might a year-long war in the Republic of Congo and Botswana affect the price of a diamond in a jewelry store in the United States