Market AdvantagesOfrecina, LopezCollege of the SequoiasMarket AdvantagesIn short, there are several concepts that should always be considered when creating or marketing a new product. Comparative advantage and absolute advantage are always factors that enable nations to compete with each other. An economy must first obtain at least one of these advantages to be able to successfully market a product. President Abraham Lincoln used these concepts when discussing the completion of the transcontinental railroad system. Comparative Advantage The concept of comparative advantage is actually quite simple. Comparative advantage is the ability to carry out a particular economic activity more efficiently than another. In fact, this concept is used by several countries around the world. For example Switzerland, this nation produces several goods and services such as cheese and fine chocolates. If the nation sees the opportunity to produce a more profitable product, then it will sacrifice the production of the less money-generating product. In the case of Switzerland, these would be the two products cheese and chocolate. If they could produce the cheese at a lower cost than the chocolates, the production of cheese would increase as the production of chocolates decreased. Thus giving Switzerland a comparative advantage, it could always buy or trade cheaper chocolates with other countries. (The Theory of Comparative Advantage, 2014). Absolute Advantage Having an absolute advantage means that a nation or its economy could produce certain goods using fewer resources at a much lower cost than others. This does not necessarily mean that an economy must produce such a product. However, there is... middle of paper... The United States had to build its own rails, then it could keep money regulated within its own economy. We have our own iron to produce the rails as well as the manufacturing capabilities to do so. This would then reduce expenses and provide a solution to the problem of the unfinished railway. This way, the United States would continue to complete the transcontinental railroad, but also keep its own money in its own economy. The president used the concept of absolute advantage to solve this problem, and in this case it worked quite well. Reference page The theory of comparative advantage. (nd). Globalization101. Retrieved May 7, 2014 from http://www.globalization101.org/the-theory-of-comparative-advantage/Absolute Advantage. (nd). Economic aid. Retrieved May 7, 2014 from http://www.nomicshelp.org/blog/glossary/absolute-advantage/