Why do trade between countries exist? Absolute and comparative advantages provide a basis for explaining and justifying international trade. Absolute advantage:when a country is able to produce goods or services with fewer resources than another country. Comparative advantage:when a country is able to produce goods or services at a lower opportunity cost than another country.Why do trade between countries exist? Absolute and comparative advantages provide a basis for explaining and justifying international trade. Absolute advantage: when a country is able to produce goods or services with fewer resources than another country. Comparative advantage: when a country is able to produce goods or services at a lower opportunity cost than another country