An absolute and comparative advantage is essential concepts within the economic spectrum and influences the process of devoting resources to the use and production of goods and services. Hence, absolute advantage entails the ability of a nation or individual to produce a specific good or service efficiently (Costinot, Donaldson and Smith, 2016, p206). Through the efficiency in the production process, it translates into the concept of absolute advantage. On the other hand, comparative advantage denotes a nation such as China emphasizing on specialization in the production of a particular product or service (Low, 2016, p97). As opposed to absolute advantage that is dependent on superior production capability, comparative advantage is dependent on opportunity cost.