Question

Find 3 or more industries which have absolute and/or comparative advantage in Netherlands.

Answer 1

First lets see what is absolute and comparative advantages.

Absolute advantage- When the country can produce more of a good from its resources than anyone else.

Comparative advantage- When the country can produce a good at a lower use of resources.

With that said, lets see in what does the Netherlands have comparative and/or absolute advantage in.

From the international trade data, we can see that the Netherlands has comparative advantage in the following industries-

• Agriculture and foods
• Beverages
• Flowers and bulbs.