Another reason that all jobs will not decamp to China is that the economic case for free trade rests on comparative advantage, not absolute advantage.
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"Absolute Advantage promises fast delivery as the items ordered will be delivered right to the buyer's doorstep within 48 hours after the confirmation of payment.
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The concept of absolute advantage however does not address a situation where a country has no advantage in the production of a particular good or type of good.
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So, Portugal possesses an " absolute advantage " in producing cloth due to fewer labor hours, and England has a " comparative advantage " due to lower opportunity cost.
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Developing countries and countries without a welfare state have an absolute advantage in textile production because it is labor-intensive and their poor social insurance systems allow them low labor costs.
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Widely regarded as one of the most powerful yet counter-intuitive insights in economics, Ricardo's theory implies that comparative advantage rather than absolute advantage is responsible for much of international trade.
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Run by KL-based computer distribution company Absolute Advantage Sdn Bhd, the website has already attracted customers from as far as Mauritius, Sri Lanka and Cyprus since it was launched on Jan 15.
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Mercantilists failed to understand the notions of absolute advantage and comparative advantage ( although this idea was only fully fleshed out in 1817 by David Ricardo ) and the benefits of trade.
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Absolute Advantage will be among more than 70 exhibitors at the upcoming ITX'98 exhibition, which will showcase local IT innovations, products and brands and is expected to attract more than 40, 000 visitors.
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"Internet commerce services which has become such a rage in the West offers customers the convenience of hassle free buying, " said Absolute Advantage's managing director Lau Teck Wah during the launch recently.
