What happens if a country had absolute advantage over the other
If one country had an absolute advantage over another in producing a certain good or service, it means that they can produce that good or service more efficiently and at a lower cost than the other country. In this situation, both countries can potentially benefit from specializing in producing the goods or services in which they have an absolute advantage and then trading with each other.
The country with the absolute advantage can sell their goods or services at a lower price, enabling them to capture a larger share of the market and potentially increase their market power. The other country may struggle to compete with the lower prices and may see a decrease in demand for their own goods or services.
In the long term, having an absolute advantage can lead to economic growth and increased prosperity for the country that possesses it. However, it is important for both countries to engage in fair and mutually beneficial trade practices to ensure that both parties benefit from the specialization and trade relationship.