According to Adam Smith, the power to make the economy growth is due to the free exchange between the countries, so that each country should specialise in the manufacturing sector has the absolute advantage. The goods are considered to have absolute advantage when production costs per hour labor standards to produce a unit of goods that is lower than that of other countries. Thus the nation, companies can achieve greater benefits through the international labour assignment if that country know to focus on the production and export of those goods with absolute advantage, and knowing conduct import these goods less absolute advantage. So a key thing in arguing about the absolute advantage is the comparison production cost of individual items between countries.. Obviously the trade between other countries suffering from the trade, they will reject it. Suppose the world has only two countries and every country produces two identical items. The first nation has an absolute advantage in the production of goods X second national the absolute advantage in the production of the goods that match the ýo first nation. If every country undertook specialization in the production of a commodity which they have absolute advantage, then swap, both countries benefit. Essence of absolute advantage has exhibited mimh shown through the following example:
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