International Trade

F.S - Financial Services
C.F - Cut Flowers

Absolute Advantage

Absolute advantage is where one country can produce a good at a lower unit cost compared to another. This is normally shown by a greater total capacity, since that leads to higher efficiency (EOS).

According to this theory of trade, the UK will not trade with Kenya.

Comparative Advantage

Comparative advantage is where one country can produce at a lower opportunity cost to another.

According to this theory of trade, the UK will trade with Kenya.
Opportunity cost of producing F.S in the UK is 1 (1:1) Opportunity cost of producing F.S in Kenya is 2 (2:1)

This means that the UK gives up less cut flowers per financial service, and therefore it makes sense for the UK to produce financial services and Kenya to produce cut flowers, and then trade.