Question

One poor country produces nearly 97% of the quinoa consumed around the world, and most of it is sold to wealthy nations. Although there are other areas where the seed will grow, the majority of the quinoa sold is imported from this area. This country has a(n) __________ in the production of quinoa.

Answer 1

The poor country has an absolute advantage in the production of quinoa.

What is absolute advantage?

A country has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries who produce the good.

For example, if a country produces 97% of a good, it means it produces majority of the good. This indicates that the country has absolute advantage in the production of the good.

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