Suppose that Spain and Germany both produce oil and shoes. Spain's opportunity cost of producing a pair of shoes is 3 barrels of oil while Germany's opportunity cost of producing a pair of shoes is 11 barrels of oil. By comparing the opportunity cost of producing shoes in the two countries, you can tell that    has a comparative advantage in the production of shoes and    has a comparative advantage in the production of oil.

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.