The principle of comparative advantage predicts that two nations will benefit from trade with each other,?

Question

even if one nation is better -in absolute terms- than the other in producing all goods. how this is possible?

Answer 1

Allocative efficiency will cause overall production to rise when the countries specialize in that which they are more favorably endowed.  If I can devote my inputs 50/50 to two goods it will be less that 75/25 while trading my excess with someone else for my shortages.  Ricardian trade principle.