Sometimes a country or an individual can produce more than another country,
even though countries both have the same amount of inputs.
For example, Country A may have a technological advantage that, with the same amount of
inputs (arable land, steel, labor), enables the country to manufacture more of
both cars and cotton than Country B. A country that can produce more of both
goods is said to have an absolute advantage.
Better quality resources can give a country an absolute advantage as can a higher level of education and overall
technological advancement. It is not possible, however, for a country to have a
comparative advantage in everything that it produces, so it will always be able to benefit from trade.
