Question

Are differences in geography behind the

differences in absolute advantages?

Short answer

It depends on various factors whether differences in geography behind the differences in absolute advantages.

Step-by-step solution

Step 1. Definition

The ability of individual, firm, region, or country to produce a greater quantity of a good or service using the same quantity of inputs or to produce the same quantity of a good or service using a lesser quantity of inputs can be referred to as absolute advantage.

Step 2. Explanation

Yes, sometimes geography plays a role in causing differences in absolute advantages but it is not the only factor.

Take an example, as the amount of effort required to mine coal depends to a great extent on where coal deposits are located in abundance, which depends on geography. But smartphones stores are located everywhere, this is because the productivity of smartphones depends on things other than geography.