Comparative advantage is a situationin whicha country, individual, company or region can produce a good at a lower opportunity cost than a competitor. Absolute advantage is the ability of a country, individual, company or region to produce a good or service at a lower cost per unitthanthe cost at which any other entity produces that good or service. The pattern of trade is best determined by comparative advantage (you export the good in which you have a comparative advantage). An entity or country should sell goods that other entities or countries at a higher relative cost that it does and buy those goods those other entities or countries are willing to sell at a lower relative cost than it has. To make it simpler, buy low, sell high
The most common argument in favor of trade restriction is the infant industry argument. This argument states that developing countries do not have the strength to compete with fully developed countries in the international market. Thereby, the infant industry is protected against foreign competition if trade restrictions are set. Another argument that supports trade restriction is the protection of a country against possibly negative products. A counterargument for trade restriction is that outsourcing of jobs to other countries which could result to thousands of people losing their jobs which could result to economic devastation. Another argument against trade restriction is that it includes costs that could cause economic inequality among nations, giving power to bigger corporations and could put smaller companies out of business.