Because the statement in the question says that the country must produce that product in which it is more efficient than anyone else (here comparison is with other countries), which is true for theory of absolute cost advantage. However, it doesn't say that the country must produce the product which it produces more efficiently than other product (comparison being among different products which it produces itself), which is true for comparative cost advantage theory.
1 ANS IS RELATIVE ADVANTAGE THEORY
2 ANS IS NEO MERCANTILISM
3 ANS IS B
4 ANS IS ABSOLUTE ADVANTAGE THEORY
why its absolute and not comparative ?
Because the statement in the question says that the country must produce that product in which it is more efficient than anyone else (here comparison is with other countries), which is true for theory of absolute cost advantage. However, it doesn't say that the country must produce the product which it produces more efficiently than other product (comparison being among different products which it produces itself), which is true for comparative cost advantage theory.
Hi Sir, Japan and South Korea are also small countries, then why they have many automobile industries?