Suppose the production of chocolate and wine per hour of labor in Italy and France is as follows:     Chocolate (C)  Wine (W) Italy (I)  8 bars 4 bottles France (F)  6 bars 2 bottles   a) Which country has the absolute advantage in chocolate production? Does the same country also have the comparative advantage in chocolate production? Explain your answers

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Comparative Advantage and Absolute Advantage Analysis

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