Example

Country C has the absolute advantage.

• Country A can produce 1000 parts per hour with 200 workers.
• Country B can produce 2500 parts per hour with 200 workers.
• Country C can produce 10000 parts per hour with 200 workers.

Considering that labor and material costs are all equivalent, Country C has the absolute advantage over both Country B and Country A because it can produce the most parts per hour at the same cost as other nations. Country B has an absolute advantage over Country A because it can produce more parts per hour with the same number of employees. Country A has no absolute advantage because it can't produce more goods than either Country B or Country C given the same input.