Absolute advantage can also change for reasons other than investment. Natural disasters, for example, can destroy farmland, factories, and other factors of production. Pros and Cons of Absolute ...

Absolute advantage can be achieved by exploiting lower labor costs, access to a supply of resources, and a large pool of available capital. For example, Japan and Italy both produce automobiles.

In his now-famous example, Ricardo imagined that Portugal ... or 90 yards of cloth per worker per year. Given Portugal's absolute advantage in both industries, why would the Portuguese ever ...