Final answer:
A country has a comparative advantage when it can produce goods or services at a lower opportunity cost than others, leading to gains from trade through specialization. Absolute advantage, however, refers to a country's ability to produce more efficiently using fewer resources.
Step-by-step explanation:
The person, region, or country that can produce a good or service at a lower opportunity cost than others has a comparative advantage in the production of that good/service. The concept of comparative advantage is a fundamental economic principle that describes the benefit a country has when it can produce a good or service at a lower opportunity cost compared to other countries.
Conversely, absolute advantage occurs when one country can use fewer resources to produce a good compared to another country. This doesn't necessarily mean it has a comparative advantage.
When countries focus on producing goods in which they have a comparative advantage and engage in trade, they can achieve a gain from trade, allowing consumption beyond their own production capabilities. This specialization and subsequent trade can lead to increased global production, enhanced levels of consumption, the concept of intra-industry trade, and the splitting up of the value chain across different locations.