Final answer:
A nation with absolute disadvantages in producing two goods relative to another nation holds a comparative advantage in the good where the disadvantage is less, allowing it to benefit from trade.
Step-by-step explanation:
A nation having absolute disadvantages in the production of two goods with respect to another nation has a comparative advantage in the production of the good in which its absolute disadvantage is less. This concept is crucial in international trade and economics, as it allows for specialization and trade based on comparative advantages. Such specialization could lead to gain from trade because each nation focuses on producing goods where they have the lowest opportunity cost, which leads to increased global production and consumption.
Comparative advantage occurs when a country can produce a good at a lower opportunity cost than other countries, even if it has an absolute disadvantage in producing both goods. This is an important aspect of international economics, as it explains the basis for intra-industry trade and how countries can benefit from specializing in certain goods and services despite overall productivity disadvantages.