Absolute and comparative advantage are the primary principles in international trading. Absolute advantage is noted when the producer offers competitive products with fewer resources. In other cases, such a producer can produce similar products in less time. Comparative advantage weighs different opportunities and costs to understand the viability of a given product and account for alternative products. Therefore, this presents an opportunity for trading partners to choose one option over the other. In many cases, the producers benefit by taking a step of achieving a competitive or comparative advantage.
Trading between countries takes advantage of its capacity to produce different goods that many countries do not produce. Some have more resource and therefore aims to acquire an opportunity to export them to those countries that lack similar resources. Many countries have to weigh the benefits of producing specific goods to ensure that the method benefits a specific country.
Opportunity cost is achieved when a country chooses one alternative. For this case, the other alternatives are lost, and therefore a country could lose an opportunity of gaining dominance in a specific market. It could also fail to explore its trading potentials. It loses the benefits associated with other alternatives lost after identifying with one choice.
Yes, a country can have an absolute opportunity by introducing all their trading goods. However, they can specialize in producing one type of goods. The other country can specialize in producing something else. As a result, countries can trade and benefit from each other
Comparative advantage forms the basis of free trade. One country could have an opportunity to enjoy an absolute advantage in the production of one type of goods. However, both countries will enjoy the benefits of such trading models.