If Country A can produce 200 units of wine or 100 units of cheese, and Country B can produce 150 units of wine or 150 units of cheese, it can be said that Country A has an absolute advantage in both products.

Absolute advantage means that a country can produce more of a good with the same resources compared to another country. In this case, Country A can produce 200 units of wine while Country B can only produce 150 units, so Country A has an absolute advantage in wine. Similarly, Country A can produce 100 units of cheese, which is equal to what Country B can produce, but since Country A can produce more wine overall, it still has an edge. However, to fully understand trade benefits, we also need to look at comparative advantage, which considers the opportunity costs of producing each good. For example, if Country A gives up fewer units of wine to produce cheese compared to Country B, it may still be better for both countries to specialize in what they do best and trade.