Ricardo’s comparative advantage model asserts that international trade will make every single participant country better off if they traded goods in which they have comparative advantage. Tian (2008) has generalized and expanded this Ricardo's 2-country, 2-commodity comparative advantage into a multi-country, multi-commodity model. His methodology, however, occasionally fails to achieve optimal commodity distribution or to facilitate international trade even if it succeeds in optimal distribution, for it results in a high degree of difference in countries’ commodity prices. This paper proposes an algorithm that selects countries’ comparatively advantageous goods for multi-country, multi-commodity model based on their absolute advantage. The proposed algorithm simply selects a commodity with the maximum absolute advantage - the minimum price - from each country and reassigns commodities of over-assigned countries to under-assigned countries. This absolute advantage model (AAA) is found to be much simpler than Tian’s comparative advantage method and to yield superior results.
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