Comparative and absolute advantage are important ideas in global trade. They help countries decide how to use their resources and what to make.

1. Absolute Advantage:

   • A country has an absolute advantage when it can make more of something using the same amount of resources as another country.
   • For example, the U.S. grows 13.6 billion bushels of corn each year, while Brazil grows 4.3 billion bushels.

2. Comparative Advantage:

   • A country gains more by focusing on making goods that it can produce at a lower opportunity cost.
   • For example, if the U.S. focuses on technology (costing $1,200 for each laptop) and Mexico focuses on farming (costing$50 for each crop), trading with each other makes them both more efficient.

3. Impact on Global Trade:

   • In 2020, global trade reached an amazing $19.5 trillion. Countries use these advantages to build better trade relationships and grow their economies.

By using these advantages, countries can produce more and trade more, connecting economies all over the world.