Absolute Advantage
Plain definition
The ability of a country, firm, or person to produce more of a good using the same quantity of resources -- or the same amount using fewer resources -- than a competitor. Absolute advantage is about outright productivity, not trade-offs.
In economics
Absolute advantage is the first concept students meet in trade theory, but it is comparative advantage (lower opportunity cost) that determines trade patterns. A country can hold the absolute advantage in every good and still gain from importing the goods where its trading partner has the comparative advantage.
Example
If US workers harvest 10 bushels of wheat per hour and Mexican workers harvest 4, the US has the absolute advantage in wheat production because its labor productivity is higher.
The classic error is believing a country with no absolute advantage in anything cannot benefit from trade. Even a country that is less productive at everything has a comparative advantage in something and gains by specializing in its least-disadvantaged good.