Does India have an Absolute Advanatage in the exporting of gold with
the United States? And does the United States have an Absolute
Advantage in the exporting of any items to India? If an Absolute
Advantage does exist between the two countries, what is the
Comparative Advantage of both?

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Clarification of Question by drewpink-ga on 28 Nov 2005 13:06 PST

Adam Smith's principle of Absolute Advantage states: In a two-nation,
two-product world, international trade and specialization will be
beneficial when one nation has an absolute cost advantage(that is, use
less labor to produce a unit of output)in one good and the other
nation has an absolute cost advantage in the other good.

define absolute advantage