Final answer:
Autarky refers to an economy that is self-sufficient and does not engage in international trade. The concept of the export of surplus goods does not align with autarky. Instead, countries with excess domestic savings invest abroad, a typical scenario for nations engaged in international trade based on absolute and comparative advantages.
Step-by-step explanation:
The concept of autarky implies a situation where an economy is self-sufficient and does not engage in international trade. In an autarkic state, a country aims to produce all it needs without relying on external trade. However, the statement 'in autarky, production is higher than consumption and excess production is exported' is contradictory to the principle of autarky, as the notion of exporting surplus contradicts the self-sufficient nature of an autarkic economy.
In a different economic context where a country produces more than its domestic consumption, we would find that domestic savings are higher than domestic investment. This excess savings can then be invested abroad, resulting in a flow of financial capital from this country to others. This situation describes a country that actively participates in international trade, not one in autarky.
Understanding the concepts of absolute advantage and comparative advantage helps to explain why countries engage in international trade. An absolute advantage occurs when a country can produce more of a good per unit of labor than another country, possibly due to natural endowments or technological superiority. On the other hand, a comparative advantage exists when a country can produce a good at a lower opportunity cost compared to others. International trade based on comparative advantages results in increased global production and consumption levels, benefitting all participating countries.