Absolute Advantage refers to the ability of an individual, company, or country to produce more of a good or service than another entity using the same amount of resources. For example, if Country A can produce 10 tons of wheat using the same resources that Country B uses to produce 5 tons, then Country A has an absolute advantage in wheat production. This concept highlights efficiency in production. When an entity has an absolute advantage, it can lead to increased overall productivity and economic growth. By focusing on what they produce best, countries can trade with one another, benefiting from each other's strengths. This specialization allows for a more efficient allocation of resources, ultimately enhancing global trade and cooperation.