Why is absolute advantage not sustainable?

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2026-05-07 16:50

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Absolute Advantage is not sustainable for one dominant reason: when a product or service being monopolized by an individual nation or person exceeds a sale price deemed acceptable alternatives will be found. This reaction can be seen in numerous examples including:

- the rubber tree market in Brazil.

For a time Brazil was the only known producer of rubber in the world. For that reason, they were able to set their prices without much, if any, competitive thought. At some point, several rubber plants were smuggled out of Brazil and planted in the comparable climate of Indonesia. Indonesia now serves as the largest producer of rubber. (synthetic alternatives not to be neglected)

- The history of the oil trade

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