To reiterate, let's build another example of two companies that produce oranges. The number one company is located in Florida, where it is the perfect environment to produce oranges. Company number two, however, is based in Toronto, which, to be honest, is not a suitable environment to produce natural oranges, unless, of course, they are produced in a greenhouse. Although both companies are capable of growing and producing oranges, company number one has the absolute advantage because it uses much cheaper and natural methods, hence the higher demand. This theory can be contradicted with the concept of comparative advantage, which in the description means the ability to produce specific goods with fewer opportunities